adminWASHINGTON. — Global investment giants are showing continuous confidence in China, saying recent regulatory moves adopted by Chinese authorities are “necessary,” according to a recent CNN analysis.
In the article examining the responses to a slate of measures China has taken to regulate the market, CNN found that “some of the biggest names in asset management say it’s still a good time to invest.”
Referring to the recent regulatory moves as “necessary and overdue,” these companies said “China’s growth story remained attractive.”
“The case for China in the long-term is intact,” Luca Paolini, chief strategist for Pictet Asset Management, an arm of Swiss private bank Pictet Group, which has US$746 billion assets under management, was quoted as saying in the analysis.
Pictet isn’t alone, as CNN reported, and many of the biggest names on Wall Street, including Fidelity, Goldman Sachs and BlackRock, the world’s largest asset manager, are also advising their clients to “keep buying, albeit cautiously.”
Victoria Mio, director of Asian Equities at Fidelity International, expressed optimism in the article about the future of the world’s second largest economy.
“China is still on track for decent GDP growth over the next decade,” she said, pointing to increasing purchasing power by the middle class.
Some firms, the article said, are optimistic about other Chinese assets.
Paolini pointed out that the yuan has performed better than other major currencies this year, up 1 percent against the US dollar. Chinese government bonds are also over-performers, returning 3,5 percent compared to a 1,1 percent loss on JP Morgan’s global government bond index, a benchmark tracked by bond investors. — Xinhua.
Online Reporter