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Chinese market becomes more attractive to overseas investors

(People's Daily Online)    17:17, December 03, 2019

The Chinese market is becoming more attractive to overseas investors, thanks to its optimized economic structure, the GDP growth driven by domestic demand and its improved business environment.

Despite the slowdown in global economic growth, China's economy remains resilient, and the dividend of further deepening reform continues to be released. For overseas investors, the value of the Chinese market is becoming increasingly prominent.

China's macroeconomic fundamentals are reliable, and there is the potential of growth for its capital market. Bin Shi, UBS Asset Management's Head of China Equities, said China's long-term economic fundamentals remain stable and are driven by domestic demand.

The Chinese market is full of opportunities for international investors, said Hayden Briscoe, head of Asia Pacific fixed income at UBS Asset Management.

Based on historical data, the Chinese stock market is more attractive than other markets in the Asia-Pacific region. Under the trend of stable economic growth prospects, investors can find reliable profit opportunities in China's A-share market.

Additionally, Chinese government bonds become an alternative to traditional safe-haven assets such as US treasuries, gold, and the Swiss franc.

According to UBS market research and analysis, when the market volatility intensifies, the performance of Chinese government bonds is consistent with the performance of safe-haven assets expected by investors. Yields on Chinese government bonds narrowed as the volatility index (VIX), a measure of market panic, surged, suggesting that investors increasingly see the market as a "safe haven".

As a result, Chinese government bonds stand out in emerging markets as an alternative to safe-haven assets. 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Web editor: Hongyu, Bianji)

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