China’s equity and bond markets are set to give investors progressively greater opportunities in 2021, according to Credit Suisse.
Chinese markets offer “high rates of growth at still attractive valuations,” the Swiss investment bank said in its 2021 outlook report. The world’s second-largest economy is predicted to be one of the few countries to register a positive GDP figure this year after bringing the coronavirus outbreak relatively under control.
Credit Suisse predicted China will record 2.2% growth for 2020, followed by a sharp jump to 7.1% in 2021.
One of the main growth areas in China’s markets is the technology sector.
Several risks that China faces, starting with a resurgence in coronavirus infection cases, according to Ray Farris, chief investment officer for South Asia at Credit Suisse siad
“Another would be that U.S. policy turns even more aggressive with China and more disruptive than it has been. We think that’s unlikely with a Biden administration,” he said, adding that President-elect Joe Biden’s approach would be more predictable and rules-based.
While regulatory pressure is also a risk, it is unlikely to derail growth in China’s technology sector, according to Farris.
Reference: CNBC
Thai
Eng