Investors are increasingly focusing on Chinese opportunities
A recent study by the Economist Intelligence Unit has looked into China’s exposure to global investors and found that it is on the increase. The study shows that 80% of investors are considering investing in China over the next 12 months. Only 4% of respondents planned to reduce their exposure to the country. The study highlights China’s increasingly important role in the global economy.
80% of investors will consider investments in China at some point over the next 12 months. This, at least, is the conclusion from the Economist Intelligence Unit’s study The China Position survey on China’s exposure to global investors.
The survey, commissioned by Invesco, also shows that only 4% of respondents plan to reduce exposure to one of the world’s most important economies. In fact, respondents generally described their Chinese exposure as above-average compared to their counterparts in the industry.
Get stories like this straight to your smartphone with the Born2Invest app. The mobile application collects the latest finance headlines making sure that you’re always up to date, no matter where you are.
China is becoming a key investment destination
The Economist survey involves 411 asset owners and professional investors from North America, Asia Pacific (Apac), Europe, and the Middle East and Africa (Emea). Respondents included asset managers, insurance companies, sovereign wealth funds and commercial banks with total assets under management of between $500 million and more than $10 billion.
According to the results of the survey, almost 90% of the respondents have a “dedicated investment exposure” in China. “Dedicated” means that investments are targeted at China and do not fall into grouped investments, such as the generative “emerging” category. Even in the remaining 10%, two-thirds still have exposure to China through mixed basket funds (global, Asian or emerging markets).
Better regulations have smoothed the barrier to entry
In addition to China’s growth and the organizations’ development in the Chinese market, regulatory progress is the driving force behind the entry of global investors into the Chinese market (41%). For example, progress has been made in corporate reporting, legal protection, market surveillance and financial intermediaries.
Respondents participating in the specialized exhibition in China pointed to numerous reasons for their investment. First, portfolio diversification (87%), then, “the acquisition of experience for internal teams” (69%) and finally, the search for profits (62%). 77% said they had achieved these goals, while 21% said it was too early to say. Only 1% finally stated that the targets had not been met.
Thematic investments in China: tech
In line with China’s growing role as a global leader in technological development, 58% of respondents indicated that innovation (i.e. artificial intelligence, robotics, etc.) is the main investment theme most likely to attract investment from their respective organisations.
Financial services follow at a short distance with 51% and the services of the “new economy”, such as health, IT and education in third place with 41%. The renewable energy segment is another important issue, especially in North America: for 39% of respondents, it is equal to the services of the “new economy”, in terms of probable investment.
US-China trade war: not a major problem
The answers to this question are mixed. On the one hand, 43% of respondents said it will have a negative impact on investment decisions. However, 42% responded that it will have a positive impact. North American respondents are the most optimistic, with 53% citing “some” positive impact or “significant” positive impact. Apac investors are the most pessimistic ones, with almost 50% expecting a “moderate negative impact” and another 8% expecting a “significant negative impact.”
Nevertheless, respondents still said that they expect to “significantly increase” or “moderately increase” exposure to China. In the Apac and Emea regions, more than 67% of the respondents expect to increase exposure to China, while in North America 71% expect to increase exposure to China in the next 12 months.
(Featured image by Lian Rodriguez via Pexels)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in WEWEALTH, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 22]
This week we're waking the dead as we go back to the metaverse baby. With Apple soon announcing its long-awaited...
Bullish on Bitcoin? – Blackrock CEO Warns of “Debt Ceiling Drama”
Many bitcoin and cryptocurrency investor advocates view BTC as a hedge against inflation and debt concerns, especially as central banks...
Docline Prepares a New Round of 6 Million for 2024
Docline maintains an agreement with Mapfre, with whom it offers digital health programs to the company's policyholders; with the Ballesol retirement...
Cedacri Prices New €275M Bond to Pay €50M Tax and €150M Extra Dividend
As stated in the Report to Cedacri's 2022 Annual Report, and as recalled in the release in which Moody's assigned...
Bierzo Aire Limpio Starts Crowdfunding to Support the Legal Defense of the Environment
The NGO holds an assembly that includes a state-wide meeting against waste incineration, debates on wind and solar macro-projects, and...
Featured2 weeks ago
Coffee Producers in Vietnam and Indonesia Are Said to Have Almost Nothing Left to Sell
Biotech2 days ago
Sicit Acquires 51% of Plant Biostimulants from Chile’s Patagonia Biotechnology
Cannabis1 week ago
Where Do Cannabis Users Buy Cannabis From: New Frontier Data Study
Biotech2 weeks ago
Boehringer Ingelheim Invests 46 Million in R&D in 2022 in Spain