Despite pessimism and property challenges affecting China's economy and consumer confidence, there is potential for growth and global success for competitive companies.
Audio PlayerFrom Morningstar:
Sandy Pei, Deputy Portfolio Manager of the Federated Hermes Asia ex-Japan Fund, shares insights on Chinese economy. Pessimistic sentiment on the ground but valuation reflects potential growth. Challenges in property affecting consumer confidence and spending. Impact of Evergrande’s liquidation felt in market. Opportunities for investors in Chinese bonds. Fund underperformance due to asset allocation issues. Excitement in Chinese state-owned enterprises and travel stocks for potential growth. China’s market difference prevents Japanification, with potential for competitive companies to thrive globally.
Read more at Morningstar: Is China Becoming ‘Japanificated?’ – Asia Manager…