(Yicai Global) Dec. 1 -- China is undertaking restructuring and transformation of its economic structure and service industry, which will result in new investment opportunities across multiple sectors including e-commerce, China Securities Journal cited Geoffrey Wong, head of global emerging markets and Asia Pacific equities at Union Bank of Switzerland [NYSE:UBS] (UBS) as saying at the 2018 Market Outlook Conference held in Shanghai yesterday.
The accelerated growth of the global economy and low inflation environment will benefit equity markets, especially when emerging countries and the Eurozone enter the early recovery stage, said Asset Allocation Supervisor Erin Browne.
Emerging markets will continue with their uplink cycles in the next few years, Wong said, and they are transitioning from energy, material and other high-cycle sectors to the internet, technology, consumer, and other long-term growth sectors. These will develop steadily in the next few years, taking advantage of population structure and rises in productivity.
China's markets are undergoing structural changes and medium-term economic growth may slow, Wong said. He indicated that economic restructuring will constantly bring about more investment opportunities in service industries such as e-commerce, e-payment, social media, education and insurance sectors.
UBS' asset management department also thinks highly of European equity markets, considering that European Central Bank's credit growth is propelling demand growth, which is expected to further improve market returns.