Invesco's chief investment officer in Hong Kong and China, Lei Ma, pointed out that the Chinese stock market has maintained a positive momentum since the beginning of the year, rebounding more than 30% since hitting bottom in January. Both onshore and offshore Chinese stocks have recorded positive returns since the beginning of the year, with the materials, industrial and communication services sectors performing well. The positive factors that drive the stable and strong economic growth in the first half of 2024 are expected to continue into the second half of the year.

Mike Shiao, Invesco's chief investment officer in Asia (excluding Japan), believes that Asian (excluding Japan) stock markets are expected to continue to grow in the second half of 2024. It is believed that domestic demand in Asia will still be the powerhouse of strong growth and will contribute significantly to regional growth, especially considering that Asia accounts for about 60% of the world's population. Investors should reexamine the growth drivers of various markets in Asia to capture potential investment opportunities.

In addition, Ding Yifei, Invesco's senior manager of fixed income high-grade investment portfolios, said that the spread of hard currency sovereign bonds in Asian emerging markets will continue to tighten in the first half of 2024. They are more bullish on local currency bonds in Asia rather than hard currency bonds.

Lin Chunhui, Invesco's fixed income ESG portfolio manager, believes that since the beginning of the year, Asian high yield bonds have significantly outperformed high yield bonds in Europe and the United States, with the latter two asset classes recording negative total returns. The total return of Asian high yield bonds is mainly driven by the excess returns of the real estate industry, which accounts for about one-third of the index total return.

Chris Lau, Invesco's senior manager of fixed income high-grade investment portfolios, judged that the performance of investment-grade credit in Asia was relatively good in the first half of this year. Robust fundamental factors, strong technical factors, and a historically attractive overall yield will continue to support the credit market in the second half of the year.