China may be looking to ease regulations. Is it time to invest?
[ad_1]
Is it time to get started investing?
Jack Siu (Chairman of Credit Suisse’s Greater China Investment Office) said on Friday that valuation is still attractive, according to CNBC’s “Street Signs Asia”.
Siu stated that valuations were at their lowest point in 10 years prior to China’s recent rebound.
He said, “It will be volatile but it is time to get our toes in.”
He said that the stock market has priced in enough risk premium for issues like Covid in China or lingering worries about the real estate markets.
Be careful when investing
Richard Martin (a management consultant) said China can be “investable but it must also be controlled as a political market.”
Any market that falls around 30% in 10 days due to policy and geopolitical concerns — and then bounces back after the announcement of government support, is driven by policy and not the value or performance of its companies, said Martin, who is managing director at IMA Asia.
You can always invest. Martin advised that it was important to fully understand political/policy winds.
The ‘tough road ahead’
Michael Yoshikami, from Destination Wealth Management, said that it would be difficult for Chinese companies to succeed in the future as China’s regulatory environment is still uncertain.
Yoshikami was the CEO and founder of the firm. It will still be active. Investors should be cautious with the China sector now.
As Beijing attempts to reach its goals, the investors will be watching closely for any changes in China’s policies. gross domestic product growth target of about 5.5% for 2022.
Monday. The benchmark lending rate was not changed by the central bank.
We expect China’s policymakers will be active in supporting China’s growth. In the macro area, we expect to see both a cut in interest rates and a decrease in reserve requirements ratios (RRRs) for banks in the next weeks, along with a significant increase in fiscal support for the economy,” Salman Ahmed from Fidelity International’s global head for macro and strategic assets allocation, said in a Tuesday note.
RRR stands for the total amount of money banks have to keep as reserves.
— CNBC’s Evelyn Cheng contributed to this report.
[ad_2]