Han Ya Investment: Asian stock valuations are extremely attractive and can bring significant returns.

2024-08-16 14:04

Zhitongcaijing
Drawing on Japan's successful experience, governments in various Asian countries are launching corporate reform plans, which are expected to increase dividends and share buybacks, increase return on equity and boost stock prices, while reducing volatility.
Sundeep Bihani, portfolio manager at Hanwha Singapore, stated that due to geopolitical and regulatory factors leading to pressure on company profits, Asian stock markets have underperformed most developed markets in the past 10 years. Therefore, Asian stock valuations are now highly attractive when measured by price-to-book ratios and price-to-earnings ratios. Drawing from Japan's successful experience, governments in various Asian countries are launching corporate reform plans, expected to increase dividends and share buybacks, improve return on equity, boost stock prices, and reduce volatility.
Hanwha Investments pointed out that the Asian financial markets have always been a gateway for investors to participate in Asia's wealth growth. On average, over the past 30 years, investing $1 in Asian stocks has generated over $5 in total returns.
Christina Woon, portfolio manager at Hanwha Singapore, stated that Asia is not only very suitable for income strategies, but also expands understanding of income investments. Over the past few decades, cash reserves of Asian companies have been increasing, covering most industries and markets. With the push from Chinese internet companies, Asia is currently the only region where share buybacks are occurring.
Over the past 14 years, the Vietnamese stock market has recorded the highest compound average growth rate. Ngo The Trieu, CEO and Investment Director of Hanwha Vietnam, pointed out that with Vietnam becoming another manufacturing hub outside of China, its economic prospects have become brighter. Vietnam has also implemented various reforms in recent years, such as improving transparency and shortening transaction times, making it easier for foreign investors to enter the market.