AVN 65.31 Decreased By ▼ -0.86 (-1.3%)
BAFL 30.25 No Change ▼ 0.00 (0%)
BOP 4.63 Decreased By ▼ -0.10 (-2.11%)
CNERGY 3.89 Decreased By ▼ -0.12 (-2.99%)
DFML 13.50 Decreased By ▼ -0.60 (-4.26%)
DGKC 42.15 Decreased By ▼ -1.54 (-3.52%)
EPCL 46.13 Increased By ▲ 1.48 (3.31%)
FCCL 11.45 Decreased By ▼ -0.38 (-3.21%)
FFL 5.19 Increased By ▲ 0.22 (4.43%)
FLYNG 5.82 Decreased By ▼ -0.28 (-4.59%)
GGL 10.04 Decreased By ▼ -0.34 (-3.28%)
HUBC 63.21 Increased By ▲ 0.91 (1.46%)
HUMNL 5.73 Decreased By ▼ -0.12 (-2.05%)
KAPCO 27.81 Increased By ▲ 0.26 (0.94%)
KEL 2.15 Decreased By ▼ -0.06 (-2.71%)
LOTCHEM 25.37 Decreased By ▼ -1.23 (-4.62%)
MLCF 21.65 Decreased By ▼ -0.87 (-3.86%)
NETSOL 84.95 Decreased By ▼ -1.25 (-1.45%)
OGDC 86.64 Increased By ▲ 0.37 (0.43%)
PAEL 10.96 Decreased By ▼ -0.31 (-2.75%)
PIBTL 4.21 Decreased By ▼ -0.07 (-1.64%)
PPL 78.65 Decreased By ▼ -1.43 (-1.79%)
PRL 13.61 Decreased By ▼ -0.05 (-0.37%)
SILK 0.88 Decreased By ▼ -0.02 (-2.22%)
SNGP 41.00 Decreased By ▼ -0.75 (-1.8%)
TELE 6.01 Decreased By ▼ -0.20 (-3.22%)
TPLP 16.02 Decreased By ▼ -0.25 (-1.54%)
TRG 111.89 Decreased By ▼ -0.66 (-0.59%)
UNITY 14.01 Decreased By ▼ -0.34 (-2.37%)
WTL 1.14 Decreased By ▼ -0.06 (-5%)
BR100 4,026 Decreased By -48.6 (-1.19%)
BR30 14,402 Decreased By -123 (-0.85%)
KSE100 40,451 Decreased By -396 (-0.97%)
KSE30 15,110 Decreased By -101.7 (-0.67%)
Follow us

BEIJING: China and its companies will continue to attract foreign investments, but tensions on a number of issues like trade and tech with the United States increases the risk of a decoupling between the two economies, an economist and a strategist said.

China's management of recent crises while maintaining its leading position as a global manufacturing hub, along with the Biden administration not escalating the Trump-era tariff-war are seen as positives, they told the Reuters Global Markets Forum.

"The adversities - trade war and COVID-19 - which (were) thought to be detrimental to China's position as the 'world's factory', have been turned into triumphs," Aidan Yao, senior emerging Asia economist at AXA Investment Managers, said.

According to a recent AXA Investment Managers report on China's supply chain industry, the country's global export market share rose to 15.1% in 2020 from 13.2% at the end of 2017 before the trade war began, Yao said.

"That's why it's not surprising that foreign firms are keen to invest more in China, particularly as COVID-19 continues to wreak havoc elsewhere," he added.

Foreign investors will want a larger share of the Chinese pie, "as long as there is an economy growing, some innovative firms, some stable currency, some government bonds yielding well above U.S. Treasuries," said Frank Benzimra, head of Asia equity strategy and global asset allocation at Societe Generale.

However, there is a risk of a decoupling between China and the United States, Benzimra said.

Yao said China's recent regulatory crackdown on companies were actions to de-risk its financial system, encourage fair competition and improve data security, but the case of Didi Global was an example of intensified mistrust between the United States and China.

"This may be a start of U.S.-listed Chinese companies coming home, which will benefit HKEX (Hong Kong Exchanges and Clearing) and (Chinese) A-shares," Yao said.

China's internet watchdog stunned investors with an investigation into Didi two days after the ride-hailing giant's New York stock market debut.

"Both sides would want to preserve the current, delicate balance - of a lot of posturing, but without tangible actions following through," Yao said.

Comments

Comments are closed.

Despite challenges, China attractive for investors

Suddenly, ailing SOEs come under PDM govt’s focus

At least 41 killed as passenger coach falls into ravine in Lasbela

6.3 magnitude earthquake jolts Islamabad, surrounding areas

Ten children killed in northwest Pakistan boat capsize

Pakistan expresses interest in possibility of currency swap with Russia

China’s 2022 smartphone shipments the lowest in 10 years

Blinken heads to Middle East as violence erupts

50pc duty imposed on import of ‘Mild Hybrid Vehicles’

Al-Nahyan due tomorrow to discuss trade, investment

LPG hits historic high of Rs300/kg: LPGA demands setting up of probe commission