$node.PillImageNode.Description

Episode 97: Beneath Trade Clouds, China’s Transition Opens Opportunities

Published on09 JUL 2018
Topic:
China Regional Analysis

09 JUL 2018 - Rising trade tensions with the United States should not obscure the importance of China’s progress in transforming its economy and opening its markets, says Goldman Sachs Research’s Tim Moe, who sees sheer economic size and a diminished reliance on trade to fuel growth making China resilient to the direct impact of trade tariffs. At the same time, the inclusion of China A shares in global benchmark stock indexes means the Chinese market is poised to become an even bigger player on the global equity stage. “We have a very strong view that the opening up of the A-share market is something that investors globally really need to take very seriously and prepare for,” he says. A shares will be phased into global indexes slowly, but as their inclusion ramps, benchmarked funds will be required to hold a greater proportion of Chinese assets. And with that comes greater exposure to a "deep" market with ample opportunity for alpha generation, according to Moe. 

 

 

 

This podcast was recorded on June 28, 2018.


All price references and market forecasts correspond to the date of this recording.

This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this podcast does not constitute research or a recommendation from any Goldman Sachs entity to the listener. Neither Goldman Sachs nor any of its affiliates makes any representation or warranty, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefor (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. The views expressed in this podcast are not necessarily those of Goldman Sachs, and Goldman Sachs is not providing any financial, economic, legal, accounting or tax advice or recommendations in this podcast. In addition, the receipt of this podcast by any listener is not to be taken as constituting the giving of investment advice by Goldman Sachs to that listener, nor to constitute such person a client of any Goldman Sachs entity.