Slowing China trend growth means better opportunities elsewhere – BlackRock Investment Institute

Share

Share

LONDON, Dec 6 (Reuters) – Slowing trend growth in China means there are better investment opportunities in emerging markets outside the world’s number two economy, senior executives at BlackRock Investment Institute (BII) said on Wednesday.

Alex Brazier, deputy head of the BII – the research and analysis arm of the world’s largest asset manager – said during its Outlook 2024 briefing that the loss of momentum in China’s economic growth had prompted a more pessimistic view.

“5% this year in the context of a reopening of the economy, is not particularly strong,” Brazier said during the briefing.

“But more importantly for us is the trend growth outlook beyond that,” said Brazier.

Demographic change and slowing productivity growth had doused trend growth from once 10% to the current 5%, and it was to stand at roughly 3% by the end of the decade.

BlackRock Global Chief Investment Strategist Wei Li said there had been some reaction in response to the support measures that have been coming through, but that “really needs to be contextualised in the slowing longer-term growth trend as well as the real estate sector overhang”.

China’s government advisers are expected to call for more stimulus at the annual agenda-setting ‘Central Economic Work Conference’ due to be held in the next week or two.

“In risk-adjusted terms, investing in China has become less attractive, which is why we downgraded it earlier in the year. There are better options outside China,” said Wei Li.

Share

Latest

Related Content

Media Kit

    Data Protection

    The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

    The Digital Banker Summit

    Moving on from FTX: is 2023 the year of CBDCs?

    Indonesia, Jakarta

    Thailand, Bangkok

    Philippines, Manila

    Contact Us

      Data Protection

      The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

      Request Nomination Pack

      Error: Contact form not found.

      Registration Form

      Error: Contact form not found.

      Registration Form

      Error: Contact form not found.

      Registration Form

      Error: Contact form not found.

      Registration Form

      Error: Contact form not found.

      Registration Form

      Error: Contact form not found.

      The world’s preeminent Private Banks and Wealth Managers are demonstrating a committed drive in innovation, advisory, new products and services to meet the sophisticated needs of their clients.

      COVID-19
      Amid economic activity revival on the back of the Covid-19 vaccine program, organisations moving from business continuity plans to stable working environments, together with the slightest improvement in unemployment numbers, forced the world to adjust to new realities. Coming to terms with the “new normal”, global investors are now on the look-out for attractive and stable investment opportunities.

      Needs of Private Wealth customers and families worldwide have drastically changed due to the pandemic and banks have had to accelerate efforts to deploy a multi-channel service strategy and safeguard clients’ businesses and wealth against negative impacts of economic uncertainly.

      The Global Private Banking Innovation Awards will recognise the world’s best private banks, wealth managers and asset managers that are championing innovation across advisory, service, products, customer experience and more.

      Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. 

      Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

      Request Nomination Pack

      Error: Contact form not found.