‘Signs of life’ in China’s markets as supportive measures boost confidence, forum told
“The whole purpose really is, you know, for the capital market to achieve its role of allocating capital relying on market-driven forces,” he said.
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Chinese consumers are tightening their belts: What does that mean for the rest of the world?
One of the key criticisms from global investors is that the major stock indices are not acting as barometers of China’s economy because the market is diluted after excessive listings, said Robert Li, senior director and client portfolio manager of equities at Barings, a global investment company. That means long-term allocators are not willing to commit as much capital because they need to put in extra work to identify good investment targets.
“The new policies are geared towards [fixing] that, and we would like to see that,” Li said.
Sun and Li were speaking at the “Unearthing Investment Opportunities” session of the South China Morning Post’s China Conference on Thursday. The forum has brought scores of decision-makers to the city to discuss the opportunities and challenges in the world’s second-largest economy.
“But the current valuation has certainly priced in a lot of negative scenarios,” Sun said. “We’re seeing more signs of life.”