‘GET READY FOR CHINA BUB­BLE BURST’

Di­ver­sify in­vest­ment port­fo­lios and iden­tify ar­eas that can still per­form, says an­a­lyst

New Straits Times - - Business - LIDIANA ROSLI KUALA LUMPUR lidiana@me­di­aprima.com.my

COUN­TRIES and com­pa­nies have been urged to di­ver­sify their in­vest­ment port­fo­lios in preparation for the China bub­ble burst.

“Whether we like it or not, the China bub­ble will burst. This is very nor­mal as there will be a burst in every cy­cle, so it’s re­ally noth­ing to fear,” said RHB As­set Man­age­ment chief in­vest­ment of­fi­cer of fixed in­come Michael Chang yes­ter­day.

“The key take­away is to pre­pare and to iden­tify ar­eas that would still per­form in the event of the bub­ble burst.”

Chang ex­pects to see stronger fund in­flows into the debt and fixed-in­come seg­ment of emerg­ing mar­kets within the short to medium term, on the back of the United States Fed­eral Re­serve’s (Fed) slight pause on in­ter­est rate rise.

“The mar­ket at large has al­ready fac­tored in three in­ter­est rates to a col­lec­tive 25 ba­sis points rise from the Fed this year, so we are al­ready well pre­pared,

“How­ever, with this pause, we do see higher fund in­flows into emerg­ing mar­kets, in­clud­ing Malaysia. The fact that the dol­lar has weak­ened over the last cou­ple of months is also good news as this will help the vol­ume of the fund in­flows.”

Chang ear­lier mod­er­ated at a panel dis­cus­sion on the Fourth In­dus­trial Revo­lu­tion (In­dus­try 4.0) and emerg­ing tech­nolo­gies dur­ing the Mar­ket In­sights Fo­rum 2017.

Themed “Un­der­stand­ing the Business of To­mor­row”, the fo­rum fo­cused on trending top­ics con­cern­ing the in­te­gra­tion of Asia, One Belt One Road ini­tia­tive, Asean Eco­nomic Com­mu­nity, the New World Disor­der and In­dus­try 4.0.

PIC BY SALHANI IBRAHIM

RHB As­set Man­age­ment chief in­vest­ment of­fi­cer of fixed in­come Michael Chang (right) with (from left) Boston Con­sul­tant Group (Thai­land) Ltd prin­ci­pal Ben­jamin Fingerle, Sime Darby Group strat­egy and cor­po­rate fi­nance head Datuk Thomas Leong and RHB Bank­ing Group chief op­er­a­tions of­fi­cer Ro­han Kr­ish­nalingam at a panel dis­cus­sion in Kuala Lumpur yes­ter­day.

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