Above 6.5 per­cent

China Daily (Hong Kong) - - BUSINESS -

GDP growth rate that econ­o­mists be­lieve China can achieve in 2017

Asian as­set prices.

De­spite the un­cer­tain­ties, some fund man­agers said they will con­tinue to bet on the op­por­tu­ni­ties in the struc­tural shifts of the Chi­nese econ­omy as well as on ben­e­fi­cia­ries of the re­forms.

“In 2017, Chi­nese pol­i­cy­mak­ers are likely to main­tain a pro-growth stance. Mone­tary pol­icy will shift back to a more neu­tral stance with in­fla­tion re­turn­ing. Fis­cal pol­icy will re­main very ac­com­moda­tive,” said Ning Jing, a port­fo­lio man­ager at Fidelity International.

“In­vestors should also not over­look op­por­tu­ni­ties in tra­di­tional sec­tors that still con­tinue to be the back­bone of the econ­omy,” Ning said.

She noted that sup­ply-side re­struc­tur­ing in steel and coal will weed out the in­ef­fi­cient play­ers. So, com­pa­nies with healthy cash flows, strong man­age­ment teams, and at­trac­tive div­i­dend yields will con­tinue to de­liver re­turns.

Qin, at CITIC Se­cu­ri­ties, sug­gested that in­vestors take a con­ser­va­tive ap­proach to trad­ing stocks and keep an eye on mar­ginal changes in the busi­ness cli­mate.

He warned that a po­ten­tial risk could be that China’s mone­tary poli­cies tighten in a way that beats mar­ket ex­pec­ta­tions or, in the op­po­site direc­tion, faster ren­minbi de­pre­ci­a­tion could cause cap­i­tal out­flows to ac­cel­er­ate.


Two anx­ious in­vestors check stock quotes at a bro­ker­age in Fuyang, An­hui prov­ince, on Dec 5.

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