Although markets believe a soft landing is now in sight, what does that mean for the ‘last mile’ for inflation conquest?
The mutual recognition of funds initiative will act as a catalyst in re-rating offshore China equities and Hong Kong’s undervalued H-share market will be the first to benefit from inflows, according to Mansfield Mok, fund manager at EFG Asset Management.
Some segments are trading at 80-100 times price-to-earnings and there are “signs of exuberance” in the domestic market, said Andrew Swan, BlackRock’s head of Asian equities.
The two firms have agreed to work together to develop RMB-denominated exchange funds tracking Chinese securities and yuan-denominated fixed income products. The deal is also expected to help Chinese investors tap the LSE for initial public offerings and promote development of index- and derivative-based products. “We are fully committed to supporting Haitong Securities’ ambitions and […]
Expectation is mounting that China is planning its own version of quantitative easing and investors weighing up how to play the world’s most populated country may struggle to assess the situation.
Rieder, who was on visit to Hong Kong and China last week, said ten years ago there was a $4-$5trn net supply of fixed income each year. This year, the net supply will be $700bn, 15% of what was available a decade ago. “At the same time there is a huge aging population that needs […]