Fresh lockdowns this week in China have spooked global markets, but investors should be prepared for a Beijing-triggered market rebound perhaps as early as the second quarter of 2023.

Asian indices slid as investors became jittery about the prospect of China re-tightening Covid rules. The Hang Seng shed as much as 3.4% on Wednesday morning. It closed down 1.9%. Mainland China’s Shanghai Composite Index lost 0.4%.