Connect with us

Popular World News

China outlook positive despite recent regulatory changes

Bill Gates' next generation nuclear reactor to be built in Wyoming By Reuters


China outlook positive despite recent regulatory changes

© Reuters. FILE PHOTO: People walk in Lujiazui financial district during sunset in Pudong, Shanghai, China July 13, 2021. Picture taken July 13, 2021. REUTERS/Aly Song

By Divya Chowdhury (Reuters) – Financial company AIA retains a positive outlook on China, driven by its long-term structural growth and commitment to open up financial markets to foreign investors, despite its recent regulatory changes, group CIO Mark Konyn said. “International investor sensitivity to policy risk has certainly heightened,” Konyn, who’s firm manages $230 billion in assets, told the Reuters Global Markets Forum on Wednesday. But he viewed these regulatory changes as a transitionary phase, with long-term sentiment intact on the liberalisation of China’s financial system. “The bottom line is markets are recalibrating risk premiums on Chinese risk assets … we continue to hold a positive outlook on China,” he added. Chinese stocks and sentiment took a drubbing with Communist Party rulers seeking to remake the property, technology and education sectors to curb cost pressures and better serve ordinary people. Konyn said the sell-off in Chinese equities has provided opportunities to invest in the country, such as in financial services and sectors catering to direct consumption, in line with the themes of urbanisation and a broadening middle class. Meanwhile, Konyn expected inflation to be transitory and the U.S. Federal Reserve to announce its stimulus withdrawal plan by November or December this year, but he did not see markets reacting to that in a 2013-style taper-tantrum. He predicted the to end 2021 near the 97-level and the around 1.6%.
The dollar index has risen 2.5% year-to-date to 92.251 currently, and the U.S. 10-year Treasury yield has increased to 1.1920% from 0.9182% on Jan. 1. (This interview was conducted in the Reuters Global Markets Forum chat room on Refinitiv Messenger. Join GMF:
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Continue Reading
You may also like...
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


To Top
error: Content is protected !!