The healthcare and banking sectors will lead China equity returns in 2018, according to Liu Yang, chairwoman of boutique fund house Atlantis Investment Management.
A highly-concentrated portfolio held over the long-term is the best way to invest in global emerging markets, according to Sebastien Brown, investment specialist at Newton Investment Management, a wholly-owned BNY Mellon company.
Services offered by China’s securities brokerages, banks and insurers are not yet in wide use among domestic households, creating growth opportunities, said Howard Wang, co-manager of the JP Morgan China Pioneer A-share Fund.
Two CIOs, Pictet WM’s David Gaud and Matthews Asia’s Robert Horrocks, share their contrasting views on China’s banks.
China’s big state-owned banks have rallied around 18% on average in January in contrast to 2017, when they lagged the broader China equity indices. What is driving them?
The Hang Seng index set an historical record high this year, and investment strategists at DBS Private Bank expect it to run further due to increasing use of cross-border programmes by Chinese investors.
David Gaud, chief investment officer at Pictet Wealth Management in Asia, said skeptical investors should reconsider Chinese banks because of an acceleration in good credit and better fundamentals.
China Everbright Bank and Shanghai Pudong Development Bank, have confirmed plans to set up a presence in Luxembourg to serve the European market which, when given regulatory approval, will bring the total number of Chinese banks in the Grand Duchy to eight.
The Fuzhou-based bank is planning to open a non-bank financial subsidiary in the SAR to conduct business including asset management and possibly private banking services.
A lack of quality investment targets will pose a challenge for Chinese wealth managers this year, a new report by Cerulli Associates said.