China policy tightening is already impacting economic growth but some of the earnings impact may still lie ahead. BofA Global Research recently held a highly attended two-week China Conference in which investor surveys were conducted on the state of Chinese markets and the economic outlook. A majority of survey participants expect China's GDP growth to slow in 2022, and of course, this can have spillover effects to the rest of the world. When it comes to common prosperity, though, many more investors view it as necessary and as a positive for long term China growth than view it negatively. The property sector is a key driver of wealth inequality and is at risk of continued policy tightening and property appreciation may be capped. Winnie suggests the worst of the policy tightening may be behind us but earnings could still disappoint, helping to keep her neutral

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