The recent market turmoil in China and Hong Kong has triggered concerns globally as confidence wanes, foreign money exits, and economic challenges escalate. Here’s a roundup of what investors and market strategists are saying about the ongoing selloff:
1. Derrick Irwin, Emerging Markets Portfolio Manager, Allspring:
Investors questioning Chinese government intervention.
Emphasis on emotional and technical factors driving markets.
2. Marko Papic, Chief Strategist, Clocktower Group:
Policy focus on financial sector regulation and anti-corruption.
Concerns about the lack of aggressive monetary measures.
3. Pierre Hoebrechts, Head of Macro Research, East Eagle Asset Management:
Conservative positioning due to Chinese household reluctance to invest.
Government emphasis on long-term economic management over short-term market moves.
4. Tony Roth, Chief Investment Officer, Wilmington Trust Investment Advisors:
Allocating investments away from China in favor of other emerging markets.
Gradual process of adjusting allocations based on managers’ views.
5. Norman Villamin, Group Chief Strategist, UBP:
Sold China in October anticipating prolonged property sector restructuring.
Shift from owning China based on growth to selective investment.
6. Jon Withaar, Asia Special Situations Fund Manager, Pictet Asset Management:
Retail structured products impacting the market negatively.
Foreigners selling in Hong Kong despite national team buying.
7. Redmond Wong, Chief China Strategist, Saxo Markets:
Diverse investor base reallocating from Hong Kong/China to Japan and other Asian markets.
Potential oversold conditions in the Hang Seng.
8. Matt Simpson, Senior Market Analyst, City Index:
Market reactions to rescue packages questioned.
Calls for more impactful solutions to address underlying issues.
9. Diana Rulke, Professor, Tepper School of Business, Carnegie-Mellon University:
China’s property market collapse affecting consumer spending.
Rapid exit of investors despite China’s significant global contributions.
10. Corin Frost, Managing Director, OCIO Helios:
Relative risk of China increasing, impacting investor decisions.
U.S.-based investors likely to approach China as part of broader funds.
11. Simon Yu, Vice General Manager of Panyao Asset Management:
Market cautiousness toward vague rescue fund rhetoric.
Investors seeking certainty amid a gloomy environment.
12. Aninda Mitra, Head of Asia Macro and Investment Strategy at BNY Mellon Investment Management:
China’s stock market package welcomed but deemed inadequate.
Calls for broader reforms to sustain market sentiment.
13. Daniel Tan, Portfolio Manager, Grasshopper Asset Management:
Small-cap stocks leading the sell-off due to structured products.
Caution about the significance of the announced $278 billion package.
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Credit: Reuters