Source: Caixin.
The asset management manager of Man Group, the world's largest listed hedge fund, remains optimistic about the prospects of the Chinese stock market; he predicts that China will introduce policies to boost consumer confidence and thus revive the Chinese stock market.
Despite the recent correction in Chinese stocks, the head of asset management of the world's largest listed hedge fund, Man Group, remains optimistic about the prospects for China's stock market. He expects China to introduce policies to boost consumerism and revive the Chinese stock market.
Andrew Swan, Head of Asian (excluding Japan) Equities at Man Group, said he has recently increased holdings in Chinese stocks, expecting China to introduce more stimulating measures to boost the economy: "In this environment, the market may perform very well."
Swan expects the Chinese government to introduce policies to stimulate consumerism, thus providing upward momentum for the Chinese stock market. He said: "The power of deflation already exists in the economy and we expect Chinese policymakers to want to address it."
Data shows that Swan's managed $135 million MAN GLG Asian (ex-Japan) Equity Fund outperformed 89% of its peers in the past three years. Earlier this year, his team increased holdings in Chinese stocks while reducing exposure to Indonesia and the Philippines, as interest rates in these two countries are expected to continue rising.
However, Swan expects a ripple effect once the Federal Reserve lowers interest rates, allowing Indonesia and the Philippines to also lower interest rates, which will boost their stock markets, improve long-term prospects and ease the financial environment.
Looking at the sectors, Swan favors technology stocks, expecting AI-related demand to create opportunities for semiconductor companies and hardware manufacturers. At the same time, he is bearish on energy stocks and expects the appeal of defensive and consumer staple stocks to weaken.
In addition to Man Group, JPMorgan and Invesco have also recently predicted that China will introduce new policies to signal a policy shift and boost the stock market.
Last Wednesday (June 19), Invesco released a global asset allocation outlook for the third quarter, insisting on reducing holdings in US stocks because of its overvaluation, but favors Chinese, emerging market and Eurozone stocks.
Editor/tolk