Global Asset Managers Wiedman and Griffin Bullish on Investing in China

Last Updated on November 8, 2023 by SPN Editor

At the Global Financial Leaders Investment Summit held in Hong Kong, top executives discussed how China’s economic policy shift is creating long-term investment opportunities for global asset managers. Mark Wiedman, BlackRock’s Head of Global Client Business, noted that China is the world’s second-largest capital market after the United States, emphasizing that it must be a component of any global investment portfolio.

Wiedman also pointed out the ongoing policy shift in China that will likely lead to a greater emphasis on capital markets as individuals shift their savings from property and term deposits. This transition presents significant opportunities for global investors.

Ken Griffin, the founder of Citadel, recently emphasized the importance of global investors keeping a keen eye on China. According to him, it’s crucial to “be watching and investing” in the Middle Kingdom to harness its innovation and growth potential. He further highlighted that China’s progress in various sectors, particularly in solar and electric vehicle technologies, makes it a promising destination for investors.

Griffin’s remarks coincide with the International Monetary Fund (IMF) upgrading its growth outlook for China. This development underlines the country’s economic resilience and its allure for global investors. However, it’s important to recognize that investing in China comes with its share of risks and challenges, necessitating thorough research and professional guidance.

Capital Group CEO Mike Gitlin echoed this sentiment, highlighting that China’s economy is undergoing a massive transformation. He emphasized the importance of aligning investments with evolving policies to maximize the potential benefits.

Meanwhile, People’s Bank of China Governor Pan Gongsheng expressed optimism that China is on track to smoothly achieve its annual growth target of 5%. He cited positive indicators like improving production and consumption, stable employment, and consumer prices.

At the summit hosted by the Hong Kong Monetary Authority, Anne Richards, CEO of Fidelity International, reaffirmed China’s significance in the global economy, indicating that this status won’t change anytime soon.

In recent years, the Chinese economy has seen a notable shift. While its overall economic recovery has been uneven, one sector has stood out: electric vehicles (EVs) and sustainable energy technology. Bill Winters, CEO of Standard Chartered, emphasized that China is experiencing tremendous growth in these areas, particularly in electric vehicles and renewable power technology.

China has emerged as the world’s largest EV market, with 5.9 million units sold in 2022, accounting for 59% of global EV sales. Domestic brands dominate this market, with companies like BYD, Wuling, Chery, Changan, and GAC playing leading roles.

This growth in the EV sector is in stark contrast to the challenges faced by China’s property market, which has been impacted by declining consumer confidence and debt problems at real estate giants like Evergrande and Country Garden.