Coming months critical to China investment

The coming months will be critical for the Chinese economy and its attractiveness to investors, according to Value Partners senior investment director, Renee Hung.

Amid continuing negative assessments of the Chinese economy, Hung told Financial Newswire the next few weeks would be critical in terms of determining the effectiveness of Government measures in China.

The Hong Kong listed Value Partners is the asset manager handling the Premium Asia Fund and the firm’s assessment of China is that an economic recovery is underway but that it needs to be monitored in circumstances where confidence is still subdued and headwinds still exist.

She cited the key risks for investors in the China market as being the nation’s relationship with the US and the possibility that it may deteriorate further and the implications of liquidity issues contributing to recessions in the US and Europe.

As well, Hung pointed to acknowledged issues with respect to the Chinese property market and the potential for these to further undermine confidence and therefore the pace of the nation’s economic recovery.

The Value Partners assessment said that the policy support being provided by the Chinese Government was weaker than had been expected as necessary to drive sustained economic growth.

The assessment also pointed to the situation in Taiwan noted that the Taiwan market had done well year to date on the back of strong expectations around artificial intelligence (AI) and other new technologies.

However, it said that Taiwanese exports had not yet reached an inflection point, suggesting that its recovery was not yet fully underway.

It painted a similar picture for Korea which was also benefiting from the strong demand around AI.