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.
Asian equities have rallied in the third quarter of the year with a strong performance from technology, but volatility is likely to remain
China is looking to relax foreign ownership restrictions for life insurance companies and fund managers as part of its commitment to open up Asia’s largest equities market to foreign investors.
HSBC reported an 86% decline in Q3 profits having sold its Brazilian business, changed its credit spread, and faced a strengthening US dollar.
China’s consumption story is expanding quickly, creating some of the most appealing investment cases currently available to investors, particularly as markets are yet to fully price in the pace of urbanisation in the country, says UBP’s Peng Yao.
China Life, the country’s largest insurer by market cap, has issued a profit warning after it forecast a 60% drop in net profit due to a decrease in investment income for the nine months to 30 September 2016.
2016 has been a good year for commodities. Year-to-date, the FTSE World Mining index is up just less than 56% in dollar terms, while the FTSE oil and gas index is up just less than 20%.
Harvest Global Investments (HGI), part of Chinese giant Harvest Fund Management, plans to expand its operations in Europe and worldwide through the appointment Ashley Dale as its chief business development officer and chief marketing officer.
