The majority of fund buyers in the Basque country and in much of the rest of Europe expect another market correction this year. Fund managers at Expert Investor Spain, held in Bilbao last week, identified China and Brexit as the main possible triggers for this.
While there is little room for significant increase following last year’s fiscal expansion, monetary policy will continue to play a part in China.
China’s lower infrastructure spending is expected to slow long-term demand for commodities, according to GAM.
Volatility will continue in China and wider Asia but certain aspects of structural growth are still creating good investment opportunities, argued Yu Zhang, lead manager of the Matthews China Dividend Fund.
The biggest portfolio risk this year is not yet priced into the market, said Kevin Liem, chief investment officer at wealth management firm TTG in Hong Kong.
The opening of the Chinese bond could significantly change the composition of key global bond indices, according to Nicolas Jaquier, SLI’s economist for emerging market debt.
Advanced economies have become the net receiver of market shocks while China and other emerging markets have turned into the sources, according to an IMF working paper.
The Bank of Singapore has joined the chorus of analysts warning that China’s private sector credit-to-GDP ratio is now over 200%.
Chinese authorities face tough choices, but a full blown financial crisis is unlikely, said Alex Wolf, emerging markets economist for Standard Life Investments.
Anybody who says that China doesn’t have a credit problem is lying because when that much credit is pumped into the system there is no way that every single loan is a sound investment, according to Schroders’ head of Asian equities Singapore, Lee King Fuei.
A global player able to leverage off the success of its banking parent, Santander Asset Management believes its Atlas range is a cut above in the world of multi-asset.
India overtook China as the world’s fastest growing major economy on Monday, leading some asset allocators to suggest it might be time to put China allocations on hold and opt for India instead.
