For China investors, COVID lockdowns are the clear and present danger

Prolonged lockdowns in Shanghai, as China doubles down on its zero-COVID policy, have become the predominant risk to its economy and markets, forcing money managers to cut holdings or turn defensive on stocks. Global fund managers such as Pictet Wealth Management and Principal Global Investors and China-focused managers such as MegaTrust Investment and Water Wisdom Asset Management point to the worrying toll that weeks of tough anti-virus measures in many major cities have taken on people and businesses.