For­eign in­vestors move funds to A-share ‘safe har­bor’

China Daily (USA) - - BUSINESS - By CAI XIAO caix­iao@chi­

China has be­come the safe har­bor amid global economic un­cer­tain­ties and for­eign in­vestors are ac­tively par­tic­i­pat­ing in the A-share mar­ket, ac­cord­ing to the vice-chair- woman of JPMor­gan Asia.

“While over­seasmar­kets are tur­bu­lent, the Chi­nese econ­omy is very steady and the economic tran­si­tion has achieved good re­sults, which makes China a safe har­bor,” said Jing Ul­rich, vice-chair­woman of Asia Pa­cific at JPMor­gan Chase & Co.

Ac­cord­ing to the National Bureau of Sta­tis­tics in Oc­to­ber, China’s growth rate in the first three quar­ters of the year was 6.7 per­cent, which is at a medium-high level and among the high­est in the world.

Growth rate in the United States this year is ex­pected to be around 2 per­cent and there’s al­most no growth in Ja­pan and Europe, she said.

Ac­cord­ing to Ul­rich, there will be lots of in­vest­ment op­por­tu­ni­ties in­China in 2017. Pop­u­lar sec­tors in the next five years in­clude ser­vices, tech­nol­ogy, ed­u­ca­tion, health­care and en­ter­tain­ment.

The Shen­zhen-Hong Kong Stock Connect, which al­lows main­land in­vestors to buy and sel­l­HongKong stocks and vice versa, is ex­pected to be launched this year. Jing Ul­rich,

vice-chair­woman of Asia Pa­cific at JPMor­gan Chase

Charles Li, chief ex­ec­u­tive of Hong K o n g Ex­changes and Clear­ing, said on Tues­day that the Connect will be­gin op­er­at­ing in the com­ing one or two weeks.

“Global in­vestors are show­ing great in­ter­est in the up­com­ing stock connect and they are also ac­tively pur­chas­ing shares in ad­vance through the QFII (Qual­i­fied For­eign In­sti­tu­tional In­vestors) quota,” said Ul­rich.

Ul­rich also said China may use more fis­cal poli­cies to stim­u­late the econ­omy, which will be good for the me­tals mar­kets.

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