What are the opportunities in China’s new economy and ASEAN stocks, as well as implementation options - David Lai

David Lai of Premia Partners

Apr 19, 2019

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1. What are the opportunities in China’s new economy and ASEAN stocks, as well as implementation options?

Video transcript

1. What are the opportunities in China’s new economy and ASEAN stocks, as well as implementation options?

Within emerging markets, we think the investor has to be more picky……they should look at China and the emerging Asian market. We believe that their fundamentals are much better, let's say in China. There are two thing big differences from 2018. One is the trade volume development. I think it's no longer a big surprise to the market, and also the leveraging policy is totally changed from last year. Now, the Chinese government is putting more liquidity into the market, so that's why we are seeing the flow is coming back to China. Of course, the MSCI inclusion, the increase of the inclusion factors, also lead to more inflows to the China market. For emerging Asia, I think people can look at the currency side. There is a big opportunity for emerging market currency this year, particularly the rate high cycle has been stopped. So fundamentally, they are still one of the fastest growing regions within emerging markets. Most of the countries in Asia are still growing around five to six percent.

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