Advertisement
As I see it | China assets to emerge as safe bet for investors in 2022 after last year’s turbulence
- China assets are predicted to offer stability this year amid predictions of an early US interest rate increase, which could put a halt to the US stock rally
- Chinese authorities have already made it clear that this year’s focus will be on maintaining economic stability, while pursuing reforms
2-MIN READ2-MIN
4
Investors in Chinese stocks trading on the mainland, Hong Kong and the United States hit a particularly rough patch in 2021.
Share prices plunged in Hong Kong last year, as investor confidence in China’s technology and property sectors were undermined by one bad news after another – from regulatory crackdowns on Big Tech to the financial distress at highly leveraged mainland property developers. By comparison, the rally in US stocks last year saw the Dow Jones Industrial Average gain 20 per cent and the S&P 500 rise 30 per cent.
In 2022, investors in Chinese stocks could very well reverse their fortunes. China assets are predicted to offer stability this year amid predictions that the US Federal Reserve will raise interest rates earlier than previously anticipated, which could put a halt to the US stock rally.
Advertisement
Elon Musk, chief executive at Tesla and Space Exploration Technologies Corp, has forecast the next economic recession to come “around spring or summer 2022, but not later than 2023”. That means investors must seek new safe havens.
After a tumultuous 2021, it seems that China’s growth story is poised to make a comeback in 2022 and reward investors who see it as a safe bet.
Advertisement
Chinese authorities have already made it clear that this year’s focus will be on maintaining economic stability, while pursuing reforms.
Advertisement
Select Voice
Select Speed
1.00x