How investable is China? (Revisited)

About a year ago, when China emerged out of its zero-COVID lockdowns, I rhetorically asked, “How investable is China?”. I concluded, “Long-term investors in China are likely to face subpar returns coupled with high volatility”.
Now that China’s troubles have returned, it’s time to revisit the China investability question. The accompanying chart shows that China’s debt has exploded over the past decades, driven by a regime of growth-at-any-cost malinvestment. Similar credit cycles in other economies have resolved in financial crises. Will China be any different and how should investors react?

 The full post can be found here.