Carrhae Capital - Travel Diaries Observations from Yishuo Liu in China

Yishuo Liu, our research analyst in Beijing, visited Ningbo a coastal city in the Yangtze delta in China last weekend. This tier-2 city is known for its import-export of apparel goods and has subway infrastructure. Ningbo has continued to see a net inflow of people (population of @8M) and property prices range between 4,500 to 10,000 USD per sqm.

Yishuo noted that “the city is alive”, bars and restaurants have traffic, and with very few people wearing masks there is no sense or feel of the Coronavirus. Her friends from Shanghai stated that the conditions and vibe in Shanghai is now similar to what they experienced in Ningbo.

Investors often forget that China is a vast and heterogenous country. Relying on anecdotal observations from Beijing or Shanghai might lead to erroneous judgements about the state of its affairs. That is why we truly value first-hand accounts from different regions in Emerging Markets.