(Yicai Global) April 13 -- Abrdn will hike its investments in China, especially in the fields of consumer goods, technology, and renewable energy, according to the general manager of the global asset management firm's China arm.
The Edinburg-headquartered company is optimistic about investment opportunities in China as the Asian nation's economy is recovering strongly, Mao Beili said in a recent exclusive interview with Yicai Global.
More overseas visitors come to China as the nation has eased its anti-Covid policies, which is a positive signal of recovery, Mao noted, adding that Abrdn raised its forecast of China’s 2023 economic growth to 5.5 percent early this year.
In the past decade, China played an important role in forming the global landscape and boosting the economy, but global investments in the country were still lower than the scale of its contribution and influence, so hiking investments in China will be a definite trend, Mao predicted.
Moreover, as a global investor, Abrdn is optimistic about China because the country’s prospects and the ensuing consumption rebound will not only do good to the nation itself but also boost investments in the surrounding emerging markets, per the GM.
Abrdn predicts that people in China will start consuming more, which will impact the performance of firms in the fields of consumer goods, automobiles, and housing, per Mao. China has set up long-term development goals in renewable energy, as well as technology innovation, so Abrdn will pour more money into these fields in future decades, the GM added.
The American and Swiss banking sectors have recently had some problems, but the leverage of corporations and households is much lower than that of 2008, and the capital adequacy ratio in the banking and financing sectors has risen greatly, so the global risks are under control, Mao concluded.
Editors: Tang Shihua, Emmi Laine