With greater optimism around China on the back of loosening COVID restrictions and gradual increase in economic activities with returning consumer confidence, Principal continues to explore long-term investment opportunities in China’s economy.
The asset management company offers China-related funds that tap into the potential growth it presents.
“Understanding China and its overarching objectives and their potential implications should be front and center for any successful China investment strategy. As it is, the scale and variety of the opportunities offered is compelling to investors and on a longer-term perspective, the case for investing in China remains attractive as it is cheap, under owned and has catalyst for rerating,” Patrick Chang, Chief Investment Officer, Equities, Principal Southeast Asia said.
“Trending equally important is the divergence with China’s economic pattern from other markets, both in emerging and developed regions – for example inflation, because it is not a major problem, China is able to stay accommodative in its monetary and fiscal policies while the rest of the world tightens. We’re optimistic with our strategy to focus on visible yields and encourage investors to take advantage of this investment opportunities in funds with exposure in China,” he added.
Three potential growth signals in China.
* China equities continue to trade below its historical average and it is still the cheapest compared to the developed peers, with earnings growth still remain resilient;
* Inflation trends soft within China as compared with most major economies with the US and Europe consumer price index hitting a high of 9.1% and 8.9% respectively in July while China’s CPI stood at just 2.7%;
* China has corrected in the last 18 months, the longest in the last 14 years since 2008, outlasting a typical bear market period of between 9-12 months.
The asset management company is introducing the “Invest in China” promotion that allows investors to take advantage from Principal’s award-winning, China-related funds.
