China could lift global equity markets, if it can reach GDP growth targets - Great Hill Capital
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China's reopening bodes well for the country and if the world's second largest economy reaches its 5% GDP target, then it could lift global markets and benefit U.S. corporate earnings, according to Thomas Hayes, chairman at investment management firm Great Hill Capital.
"The reopening [in China] is a big deal ... people are starting to realize that, when you look at the mobility trackers in China, even though COVID waves are huge, people have two years of pent-up demand," Hayes told Seeking Alpha on Thursday. 
Chinese regulators earlier this week decided to remove most of the country's tough zero-COVID policies, while also discontinuing quarantine requirements for international travelers from early January.
Major U.S.-listed Chinese tech stocks such as Alibaba (BABA), JD.com (JD), Baidu (BIDU), Bilibili (BILI) and Weibo (WB); shares of Macau-resilient casino operators such as Wynn Resorts (WYNN), Las Vegas Sands (LVS) and Melco Resorts & Entertainment (MLCO); and Chinese travel stocks such as tour operator Tuniu (TOUR) have made strong gains this week.
Meanwhile, the iShares China Large-Cap ETF (NYSEARCA:FXI) is up more than 4% for the week. 
The sudden rollback in pandemic rules from the Chinese government have also led to a massive jump in COVID-19 cases, and countries around the world, including the U.S., have moved to impose restrictions such as negative tests on travelers from the Asian nation. 
"Those 5% GDP targets in China that the government set a week and a half ago are no longer unrealistic ... and if China reaches their 5% target, which we believe they will in 2023, then a rising tide is going to lift all boats and you're going to see that benefit immensely S&P earnings in the U.S. and European equities as well," Hayes said.
China's tough COVID restrictions have weighed on its GDP for much of the last two years, while also having an impact on global companies that source materials and supplies from the country.
Due to the lifting of zero-COVID policies, along with the recent resolution of the U.S. review of Chinese accounting policies, "the prospects for investing in China may be more favorable," Seeking Alpha contributor Rational Expectations said on Wednesday.