Post by account_disabled on Feb 25, 2024 6:14:33 GMT
The rise of amateur pessimistic China analysts on sites like YouTube and Reddit echoes the negative views of many professional investment advisors. It has helped fuel an exodus of foreign financial investment out of China. In August alone, foreign investors (including institutions) offloaded a record $12 billion in stocks listed in Shanghai and Shenzhen, more than at any time since the launch of the stock connect scheme in 2014. Retail savers are actively participating in the exodus. In the UK, the Investment Association, the trade body, says they have been withdrawing money from Chinese funds on a net basis for the past five years.
AI figures suggest UK investors now hold fewer individual savings accounts (a key retail savings vehicle) in China-only funds than in India-only funds, despite India's economy being a fifth part of the size. Fears of Job Function Email Database arbitrary political repression against Chinese companies and sectors, worsening geopolitical tensions between the West and China, and a lack of trust and transparency in the Chinese economy have discouraged many investors. The economy has also encountered serious economic turbulence: growth has slowed, the debt-ridden real estate sector is in crisis, and the government is reluctant to launch a large-scale stimulus program to reverse the effects of the disruptive zero-policy. Covid of the country.
Money examines whether China remains a land of opportunity for foreign retail investors. If so, what should savers buy? If not, how can they build a globally diversified stock portfolio without the world's second largest economy? Stock Benchmarks Line Chart (Released 100) Showing China Stocks Lagging Global Peers Will the dragon be able to fly high again? The bullish case for Chinese stocks is simple: just look at the long term. China's growth rate between 2000 and 2022 averaged 8 percent. Even now, as China faces difficulties, the IMF estimates that the country will still generate about 35 percent of global growth this year. It has 12 of the world's 100 largest companies by market capitalization, according to Bloomberg. Their companies are poised to dominate new industries such as electric vehicles, batteries and electronics.
AI figures suggest UK investors now hold fewer individual savings accounts (a key retail savings vehicle) in China-only funds than in India-only funds, despite India's economy being a fifth part of the size. Fears of Job Function Email Database arbitrary political repression against Chinese companies and sectors, worsening geopolitical tensions between the West and China, and a lack of trust and transparency in the Chinese economy have discouraged many investors. The economy has also encountered serious economic turbulence: growth has slowed, the debt-ridden real estate sector is in crisis, and the government is reluctant to launch a large-scale stimulus program to reverse the effects of the disruptive zero-policy. Covid of the country.
Money examines whether China remains a land of opportunity for foreign retail investors. If so, what should savers buy? If not, how can they build a globally diversified stock portfolio without the world's second largest economy? Stock Benchmarks Line Chart (Released 100) Showing China Stocks Lagging Global Peers Will the dragon be able to fly high again? The bullish case for Chinese stocks is simple: just look at the long term. China's growth rate between 2000 and 2022 averaged 8 percent. Even now, as China faces difficulties, the IMF estimates that the country will still generate about 35 percent of global growth this year. It has 12 of the world's 100 largest companies by market capitalization, according to Bloomberg. Their companies are poised to dominate new industries such as electric vehicles, batteries and electronics.
