Prepare for the Worst; Hope for the Best

Shanghai lockdown poses real threats to the Chinese economy

Two weeks ago, I warned about the macro risk from the city-wide lockdown in Shanghai and China’s zero-covid policy. The risk is not from the virus per say, but from the strict quarantine policy. Here are some relevant facts:

• Shanghai, China’s largest city and the economic / financial center has been under a partial lockdown since mid-March and a full lo…