"Consumer and Clean tech to power China’s growth" - Chen
Investors keen on exposure to China should look into the country’s fast growing clean technology and consumer growth segments, says Dr. Xiaolin Chen, Head of International at KraneShares.
Dr. Chen speaks to IGTV financial analyst Angeline Ong in a week when China’s central bank announced a cut to bank reserves, in a move to inject cash into the banking system and send a signal of support for the economy.
(AI Video Summary)
China entering growth and investment opportunity period
Dr. Xiaolin Chen, Head of International at KraneShares, recently shared some exciting news from China that could have a big impact on investments. The China Central Bank has decided to cut the amount of money that banks need to keep in reserves. This move suggests that China is entering a period of significant growth and opens up opportunities for investors.
Dr. Chen believes that the Chinese government will introduce more policies to attract foreign investment and increase investments from China in other countries. It's important for investors to pay attention to upcoming events like the National People's Congress, where policymakers will discuss the industries and sectors they are focusing on for development.
Trends driving Chinese investment opportunities
Dr. Chen highlights two key trends that she thinks will drive investment opportunities in China. The first is the increasing power of consumers as more people move to cities and boost consumption. The second is the green economy, as China has committed to spending a lot of money on environmentally-friendly initiatives. She recommends investing in funds like KWEB for consumer power and funds like KARS and KGRN for the green economy.
Addressing concerns about risks, Dr. Chen believes that Chinese stocks are attractively valued and have strong fundamentals. She also mentions that policymakers are focused on promoting economic growth and are taking steps to stabilise the market. She advises investors to hold onto their China investments for the long term and suggests diversifying into sectors like consumerism and the green economy.
"Buy now, pay later"
Finally, Dr. Chen talks about a unique trend in China called "buy now, pay later." The country has made great strides in technology and cashless transactions, making it easy for people to use this form of finance. Dr. Chen thinks that loyal customers who have embraced online platforms will continue to spend, and China's low-interest rates encourage people to save less and spend more.
Overall, the recent developments in China present exciting investment opportunities in sectors like consumerism and the green economy. It's important for investors to stay informed about upcoming events and trends to make the most of these opportunities.
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