Citi ’s wealth management strategist believes that with the positive effects of China’ s reopening, it has covered the negative impact of rising interest rates and recession in other places, and Chinese stocks will become highlights of investment in the first half of 2023.
The Wall Street Journal reported that the Asian investment strategy director of the Citi Global Wealth Investments of Citi Wealth Management Platform Peng Kang said in an interview that at least in the first half of the year, the stocks of Chinese companies listed at home and abroad will undoubtedly performoptimal.
He said that China's stock since November last year has only recovered a quarter of the previous 20 months.Therefore, although the bear market has ended, the road to recovery is still long.
In 2023, Citi Wealth Management strategist gives an increase in holdings of Chinese stocks. This is the only market -level holding rating they give by them globally.China is currently trying to get rid of the two -year regulatory rectification storm and strict epidemic prevention measures on the domestic economy.Officials have hinted that they will introduce more growth policies and strengthen their assistance to the domestic real estate industry that are in trouble.
Multiple measures, the MSCI Mingsheng China index has risen to a six -month high, rising by more than 50%compared with the low point touched in October last year.The index has fallen more than 40%over the past two years.
Given that the current transaction volume of the Chinese stock market is relatively scarce, Citi Wealth Management Team believes that there is more room for increase in the future.Peng Kang said that compared with the high valuation of Chinese stocks in early 2021, the current transaction volume is simply insignificant.He said that this is indeed part of the reason why Citi still watched Chinese stocks, because more capital flow may be seen.
Citi believes that there are investment opportunities for tourism and financial stocks and sectors with strategic policy support.Peng Kang said that after the re -opening of China, the tourism industry recovered, and companies such as airlines and duty -free shop operators will be directly beneficiaries.
He also said that financial stocks, including banking, insurance companies and wealth management companies, seem to be attractive, because it is expected that as the mobility of the real estate market is improved, asset quality risks will be expected to beRemove.He said that these financial companies have a certain degree of real estate exposure to exposure and exposure, and that the government is helping developers to make re -financing, concerns about the spread of the real estate crisis are weakening.
From the long -term perspective, the industry supported by the national development goals established in the "Fourteenth Five -Year Plan" of the Chinese government should have investment opportunities.Peng Kang said that after half a year, when the actual operation test of the re -opening driver was completed, the sector with investment potential will include green energy, artificial intelligence, communications, telecommunications, space technology and biotechnology.
Citi believes that other parts of Asia may become more attractive later this year, and it is expected that the Fed will begin to reverse the route of radical interest rate hikes.Peng Kang said that by the end of 2023, the Fed is expected to become one of the most loose major central banks in the policy position, and Southeast Asian countries may benefit from the weakening of the US dollar.
