Jingshun: The expected further globalization and greenization will become key investment themes in China.

2024-02-19 11:19

Zhitongcaijing
With the risk-return ratio gradually improving, Chinese stocks are providing patient investors with attractive opportunities. He expects that further globalization and greening will become key investment themes in China, with huge potential for long-term development.
Recently, the Chief Investment Officer of Schroders in Hong Kong and China, Ma Lei, stated that the recent policies in China have been beneficial for the economy, aiming to stimulate growth and laying a solid foundation for the Chinese stock market in the Year of the Dragon. Considering the attractive valuations - with Chinese stocks trading at a 53% discount compared to US stocks, there is potential for investment opportunities in the Chinese stock market in the Year of the Dragon. With improving risk-return ratios, Chinese stocks present patient investors with attractive opportunities. Ma Lei expects that globalization and green initiatives will become key investment themes in China, with huge long-term growth potential.
As the Year of the Dragon begins, Ma Lei pointed out that there are positive signs for the domestic economy and stock market in China. Chinese people are getting ready for the Spring Festival travel rush, indicating that economic activity will increase. It is estimated that domestic passenger flow will reach a record high in the next six weeks, with the potential for 9 billion trips, nearly double the 4.7 billion trips made during last year's Lunar New Year. Additionally, outbound tourism is expected to increase, with the Chinese aviation sector adding 2,500 international flights to Southeast Asia, Japan, South Korea, and other Asian regions.
Regarding the theme of globalization, Chinese companies entering the global supply chain will continue to expand into overseas markets. Schroders is optimistic about seizing new opportunities and maintaining a strong presence in global markets in various industries, while also maintaining a strong market share in the domestic market.
In terms of green initiatives, the Year of the Dragon symbolizes vitality and creativity, which is crucial for Chinese companies focusing on energy efficiency and electric vehicles. China is committed to achieving net-zero emissions and has set ambitious goals, including peaking carbon emissions before 2030 and achieving carbon neutrality by 2060. With the support of government policies and technological expertise, companies focusing on energy efficiency and the electric vehicle supply chain in China offer significant investment opportunities.