FT Adviser says that according to Barclays Wealth and Investment Management’s multi-asset team, the reduction of “apocalyptic fears” about the Chinese economy means pro-risk investors should consider upping their exposure with the head of equity strategy William Hobbs being quoted as saying:
“Some of the more apocalyptic fears regarding the Chinese economy have begun to fade in the past couple of months, prompting a sharp bounce in the country’s equity markets. For some time, we have felt policymakers in China have had both the means and the will to avert economic catastrophe and this has proved true so far… For some time, our tactical preference has tended towards the more developed charms of those stocks quoted in Taiwan and Korea. However, for those clients with a firmer constitution, able to look beyond the near term, Chinese equities may make an interesting addition to their emerging market mix.”
And:
“Allowing credit to continue growing faster than economic output in the short term is essentially buying the authorities time to enact the necessary reforms to [state-owned enterprises and local government]. For local government, the likely protracted birth of a municipal bond market may serve the dual purpose of bringing funding back on balance sheet as well as forcing a greater degree of transparency and governance…. For the state-owned enterprises, there are a number of measures. Last month, trials of a mixed ownership structure were announced, again perhaps helping to force greater accountability and enhanced corporate governance.”
To read the whole article, Barclays: China fears being overplayed, go to the website of FT Adviser.
Similar Posts:
- China’s Investment Managers Abandon the Retail Market to Focus on Wealth Management Market (FT)
- Fund Managers Are Wary of “Cheap” Asian Stock Markets (FT Adviser)
- Investors Are Overestimating the Extent of China’s Slowdown (FT Adviser)
- China’s New Rich Distrusts Financial Advisers (The Asset)
- China’s Mutual Funds Industry Now the Second Biggest in Asia (The Asset)
- Nikko AM’s Sartori: Best Buying Opportunities in Asia in My Career (AFR)
- BlackRock’s Swann: Look at the China Slowdown in a Long Term Context (FE Trustnet)
- It’s Time for Investors to Reevaluate Their China Exposures (Investments & Wealth Monitor)
- BNP Paribas’ Chi Lo: Patient Investors Should Build Up China Exposure Now (CMN)
- The Definition of Successful Investing to Affluent Chinese (The Asset)
- China M&A a Bright Spot Amid Regional Decline (The Asset)
- Aberdeen Asset Management’s China Update
- Five Takes on Multi-asset Investing in Post-Pandemic China (Schroders)
- Developments in the Reform of China’s State-Owned Enterprises (Mobius Blog)
- Asia & China Equities – Outlook in 3-D: Domestic, Digitalisation, Diversification (BNP Paribas)
