China's Transition: From Grand Projections to Cautious Bets

Global investors are scaling down expectations for China's economic growth, shifting focus to more short-term, smaller bets due to policy uncertainty and market volatility. Analysts and investors are cautious and adopting a wait-and-see approach, while opportunities in sectors like domestic tourism and online education remain.

Global investors, who once embraced China for its anticipated long-term economic growth, are now shifting their focus. These investors are increasingly considering smaller, more immediate opportunities as they grow wary of policy unpredictability and market instability.

The initial excitement surrounding promises of economic stimulus has waned. Despite significant stock market rallies prompted by such promises, detailed stimulus plans have often underwhelmed investors. This has fundamentally shifted how analysts and investors view China's domestic markets, nudging them towards a cautious, shorter investment horizon.

As experts like Goldman Sachs' Kinger Lau note, China is seen more as a trading market with quick-profit potential rather than a long-term investment haven. Investor behavior reflects this sentiment, with many adopting a 'wait and see' approach in light of geopolitical uncertainties and China's response to foreign policies.

(With inputs from agencies.)