China’s transition to consumer economy makes it more investable: senior investors

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Xinhua, New York :
Chinese ongoing efforts to transform itself from an export-oriented economy toward a consumption-based one would offer great investment opportunities for international investors, according to senior investment advisors.
China’s regulatory interference in the last 12 months is really going to catalyze the move to create it into a consumer economy, which is actually happening, said Barry Gill, managing director and head of active equities with UBS Asset Management in a recent media roundtable meeting.
The story is extremely strong in China and “it makes it super investable,” said Gill.
China’s economic stabilization should drive increased investment there as the country is expected to contribute 33 percent of global economic growth in 2019, and the Chinese bond market is on the verge of becoming the world’s second largest one, according to Suni Harford, head of investment with UBS Asset Management.
Active management of investment could fetch double digit yearly returns in some cases from Chinese capital market in the last decade while passive management of investment in Chinese benchmarks could offer about 4 percent of annual return, according to Gill.
Gill added that China still has a huge amount of tools at its disposal to maintain economic growth for some expanded period of time.
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