BT Money Hacks: Is China's economic resilience an investment opportunity?
The surprisingly strong growth of China's economy in the first quarter of the year with a notable 5.4 per cent year-on-year increase, exceeding the forecasted 5.2 per cent, has caused new questions to arise regarding the impact of the Trump tariff policies and the potential for investment opportunities in China.
In the latest episode of Money Hacks by The Business Times, host Howie Lim is on a mission to gain insights from Raisah Rasid, global market strategist at J.P. Morgan Asset Management, and Sean Teo, trader at Saxo about betting on China.
Tariff impact on China
They delve into the effects of the US tariffs on Chinese markets and the broader financial implications. Despite the US lowering tariffs from 145 per cent to 30 per cent and China's retaliatory tariffs dropping to 10 per cent from 125 per cent, the consensus is that the tariffs may have already impacted China's market.
Rasid notes that while the Chinese equity market has experienced corrections, there is still positive momentum driven by fiscal policies and government support. She emphasises the significance of China's efforts to stimulate the economy through advancements in technology, electric vehicles, and renewables.
Investment opportunity examined
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The discussion also touches on defensive sectors such as consumer staples, healthcare, and utilities, which tend to perform well during volatile times. Rasid and Teo suggest that these sectors could present investment opportunities, particularly in China's domestic market. Additionally, diversification remains a key strategy for retail investors looking to mitigate risks and capitalize on global market trends.
Teo advises investors to consider various asset classes that may perform well in uncertain times and offers quite an interesting basket of suggestions in the podcast.
Playing with market volatility
Rasid further elaborates on the need for retail investors to accept market volatility and diversify their portfolios geographically and across asset classes. She underscores the potential of international equities and the benefits of fixed income investment for income stability.
The podcast concludes with a focus on the long-term outlook for China's market. Both Rasid and Teo believe that the Chinese economy still holds significant potential, particularly in sectors such as artificial intelligence and electric vehicles. They suggest that the current market conditions and government support make China an attractive investment option.
Listen now for valuable insights into China's economic growth and investment potential amidst the Trump tariff policies.
For more in-depth financial tips and analysis, look for new podcasts episodes of Money Hacks by The Business Times, every week where expert guests provide actionable advice for managing and growing your wealth. If you have any feedback or ideas for future podcast episodes, you can reach out to btpodcasts@sph.com.sg.
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Written and hosted by: Howie Lim (howielim@sph.com.sg)
With Raisah Rasid, global market strategist at J.P. Morgan Asset Management and Sean Teo, trader at Saxo
Edited by: Howie Lim & Claressa Monteiro
Produced by: Howie Lim & Chai Pei Chieh
A podcast by BT Podcasts, The Business Times, SPH Media
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Do note: This podcast is meant to provide general information only. SPH Media accepts no liability for loss arising from any reliance on the podcast or use of third party's products and services. Please consult professional advisors for independent advice.
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