News

China to race ahead in Year of the Dog

Chinese_year_of_the_dogA recent setback in global equities does not diminish an optimistic outlook for China in the Year of the Dog. Although the National People’s Congress in March creates the potential for uncertainty, the inclusion of A-shares in the MSCI China index in May should provide a boost to the market, said Sean Taylor, chief investment officer for Asia Pacific at Deutsche Asset Management. “For the year ahead we are still expecting low teen earnings growth for MSCI China – no change here, with the recent market correction offering buy opportunities as valuations look cheaper for global investors,” he said. Josh Crabb, head of Asian equities at Old Mutual Global Investors, said investors were rightly excited to invest in Chinese technology firms in sectors such as artificial intelligence and the internet of things. But he said that “investors need to be selective here and not pay fancy multiples for the dominant players in this area, but look at lesser known names such as Primax Electronics and Advanced Wireless Semiconductor”. “Despite the recent rout in global equities, economic fundamentals look sound,” he added. “Those investors who thought they had missed the rally in Asian equities at the start of the year would do well to pick up some bargains.” ©2018 funds global asia

Executive Interviews

INTERVIEW: Giving peace a chance

Jan 11, 2019

As US-China tensions escalated in 2018, the leaders of the two economies met in Buenos Aires to agree a truce. Aidan Yao, senior emerging Asia economist at Axa Investment Managers, talks to Romil...

INTERVIEW: Operational challenges

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Caroline Higgins of Northern Trust tells George Mitton about A-share inclusion, ETF Connect and why Cayman funds predominate in the region.

Roundtables

HONG KONG ROUNDTABLE: A sunny picture

Jan 11, 2019

Changes to regulation, US-Sino trade tensions and further steps by China to open its capital markets were some of the topics discussed by our panel. Chaired by Romil Patel in Hong Kong.

SINGAPORE ROUNDTABLE: Optimism versus caution

Oct 23, 2018

The impact of financial technology, developments in Asian passporting and the promise of new markets in Thailand were among the topics discussed by our panel. Chaired by George Mitton in Singapore.