Int’l investors optimistic about China’s capital market outlook: SUMMARY – Xinhua

NEW YORK, Jan. 18 (Xinhua) — Considering the optimization of China’s COVID-19 response and more favorable economic policies, many international investment or strategic companies have become optimistic about China’s market prospects. capital.

China’s recent response to COVID-19 is improving investment prospects, UBS Global Wealth Management, the wealth management arm of UBS bank, said in its latest report.

“A full reopening is likely to happen in the first quarter of 2023, which is a good sign for the medium-term investment outlook,” she said, elevating China to “most favored country” status. in its Asian strategy.

It’s true that many international investors are flocking to Chinese assets in a sort of bargain hunt, Kevin Chen, chief economist at New York-based asset management firm Horizon Financial Group, said on Tuesday.

A recent study by Morgan Stanley indicates that markets are underestimating the profound effects of political adjustments in China and the possibility of a strong cyclical recovery despite the persistence of structural headwinds.

“This not only means that Morgan Stanley Capital International (MSCI) China’s absolute earnings per share growth and return on equity will increase significantly, but a more drastic change is about to occur,” analysts point out. of Morgan Stanley in their study.

The MSCI China index is expected to rise to 80 by the end of 2023 from Tuesday’s close of 71.09, according to Morgan Stanley and Goldman Sachs.

Kinger Lau, chief China equity strategist at Goldman Sachs, said China is well positioned in the growth, policy and inflation cycles in the global context of 2023.

On January 13, Schroder Investment Management Limited was authorized to operate a wholly-owned fund management company in China, after BlackRock Inc., Fidelity International Ltd. and Neuberger Berman Group.

Going into the summer and into the second half of the year, China should be a priority for investors, according to a Bloomberg report quoting Peter Alexander, managing director of Shanghai-based Z-Ben Advisors Ltd. End


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