(Yicai Global) Nov. 29 -- With interest rate hikes in major economies nearing the end, investors will focus more on the prospects for corporate earnings next year and such a value approach has worked best for Chinese equities, according to Chris Hogbin, head of equities at investment manager AllianceBernstein.

China is at a different point in the economic cycle. Inflation is not an issue in the country as it is in the rest of the world, Hogbin told the 2022 Shanghai Global Asset Management Forum today. The government can stimulate the economy, and potential interest rates can fall, “so it’s a different opportunity side when we look at the companies we can invest in.”

With China, it is important to find quality companies with reasonable valuations and those that have prospects well aligned with government policy, he added.

Over the year, investor focus has been on inflation and rising interest rates as central banks in the United States and Europe try to combat high inflation. Rates have risen substantially and there are some emerging signs that potential inflation is starting to slow, particularly in the US, Hogbin noted.

So next year, the focus will be much more around growth in the economy and particularly corporate earnings, he predicted, adding that it is important to identify companies with strong financial prospects and those which can continue to prosper even through a recession.

Editor: Peter Thomas