Despite concern about China’s vulnerability to Donald Trump’s brand of isolationism, there are good reasons to be optimistic about the country’s growth in 2017, says Ed Smith, asset allocation strategist at Rathbones.
US equity markets have yet to price in Donald Trump’s proposed corporate tax cuts, said Andrew Milligan, Standard Life Investments’ Edinburgh-based head of global strategy.
Blue chip stocks in Hong Kong look attractive as the MSCI moves toward a decision on including China in its emerging market indices later this year, according to fund managers.
Fidelity International has become the first global asset manager allowed to launch investment products in mainland China through a wholly-owned local subsidiary, in the latest move by Beijing regulators to open up the country’s capital markets to foreign firms.
Thanks to the end-of-year ‘Trump rally’, 2016 has been a pretty good year for investors in risky assets. However, not all asset classes have fared so well.
The biggest challenge for robo-advisers in China is convincing people to take a long-term view on passive investing, says Frank Wang, managing director at Creditease Wealth Management.
China’s insurance regulator is to introduce measures aimed at curbing the investment activities of life insurers following a string of high-profile suspensions over stock market speculation.
The new US president’s anti-trade agenda is a risk that is overblown in regards to China, according to Joshua Crabb, Old Mutual Global Investors’ Hong Kong-based head of Asian equities.
Investors should not rest too comfortably on the relative calm with which equity markets have greeted both the UK’s EU referendum and the election of Donald Trump to the US presidency warns Guy Stephens.
A transition from monetary to fiscal policy, progress on reforms in the region and low valuations make Asian equities attractive in 2017, said Andrew Swan, head of Asian equities at Blackrock in Hong Kong.
China’s debt-to-GDP increased to 250% in the first quarter this year from 154% in 2008. But Lombard Odier believes the picture is not as bad as it seems.
There are a number of parallels to be drawn between the current debt overhang in China and 1980s Britain, particularly in the northeast, says Matthews Asia chief investment officer, Robert Horrocks.
