Home Capital Investing ideas

UBS-AM stays vested on China and EMs on post-lockdown recovery and favourable trends

Jovi Ho
Jovi Ho7/17/2020 06:30 AM GMT+08  • 7 min read
UBS-AM stays vested on China and EMs on post-lockdown recovery and favourable trends
Chinese equities, which have outperformed the US and European markets year to date, remains favoured by UBS Asset Management, with some showing clear signs that China’s economy is recovering from the Covid–19 lockdowns.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (July 17): Chinese equities, which have outperformed the US and European markets year to date, remains favoured by UBS Asset Management, with some showing clear signs that China’s economy is recovering from the Covid–19 lockdowns. Coupled with the strong capacity to stimulate the support of the economy, investors can also take comfort that they can stay vested in China, the world’s second-largest economy.

“The Covid–19 crisis has been a very good test of the standalone China thesis,” says Geoffrey Wong, head of emerging markets and Asia– Pacific equities at UBS Asset Management (UBS–AM). “Though not yet back to pre–Covid–19 levels, industrial activity has recovered to a large degree,” he adds.

China was the first to report the outbreak but it was also quick to impose strict lockdown measures that helped curb further spread. It is now showing signs it is back in business, with indicators such as intra–city traffic and coal consumption recovering, showing that factories are back at work. On the other hand, countries like the US are grappling with worrisome spikes in second wave numbers. While US markets have largely recovered from the big drop in late March, there are now growing concerns that US equities have run too far ahead of the actual recovery of the economy in the US. As such, savvy investors might want to look elsewhere. China might just be an alternative, and one which is relatively insulated from what is happening in other markets.

×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.