Outlook and Perspectives for China: Moderate Optimism in Equities and in the Country’s Transformation

The Experts' Opinion

Date:

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Author: Rocío Martínez

Understanding China’s transformation requires observing its contradictions simultaneously

There is abundant liquidity in the system, with bank deposits equivalent to the market capitalization of China's A-share equities. With low interest rates, retail investors will seek higher-yielding assets, and the stock market is the primary destination for this money given the current state of the real estate sector

The lack of investor interest in China in recent years has presented us with attractive entry points to invest in high-quality companies trading at significant discounts to their intrinsic value