Schroders on investing in post-pandemic China
CNBC Africa’s Tania Habimana spoke with Ugo Montrucchio, Multi Asset Fund Manager, Schroders for more.
Tue, 04 Apr 2023 16:09:55 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Underweight position in Chinese assets due to growth concerns and regulatory issues
- Positive developments in the Chinese market, including a more business-friendly stance from leadership
- Recommendation for overweight position in Chinese equities, especially in tech sector, for potential alpha generation
Investing in a post-pandemic China is a hot topic in the financial world, with many investors wondering how to navigate the complexities of this dynamic market. Ugo Montrucchio, Multi Asset Fund Manager at Schroders, recently shared insights on the opportunities and challenges facing investors looking to capitalize on the potential growth in China post-COVID-19. Montrucchio highlighted the underweight position many investors currently hold in Chinese assets, citing concerns around growth stagnation and regulatory uncertainties. However, he pointed out some positive developments, such as the removal of 'COVID zero' policies and a more business-friendly stance from Chinese leadership. Montrucchio recommended an overweight position in Chinese equities, particularly in the tech sector, despite recent government actions targeting these companies. He emphasized the importance of stock selection and the potential for alpha generation in Chinese markets, especially if consumer spending rebounds in the second half of the year. Overall, Montrucchio sees China as a compelling investment opportunity for the short to medium term, with the potential for significant returns for savvy investors.