Global Opportunity ?

In a coronavirus-affected world, it looks as though China will have the edge on keeping the virus under control as a large scale testing program has been implemented with coordinated state intervention.

Even with a vaccine we think that developed economies won’t get back to normal until later in 2021 or even 2022. Furthermore, Chinese monetary and fiscal policy is still relatively tight compared to developed
economies, so there is more room to add further stimulus in 2021 if it is needed.

Looking to the longer term, the tech war with the US is having the effect that China is accelerating its research and development pushing spending on premium technology and that should fuel its growth in the foreseeable future.

All of this suggests that China’s handling of the pandemic has enabled it to strengthen its position relative to the rest of the world. Its economy remains potentially the one to watch for growth in the future.

If you are interested in investing in China and/or the Far East, talk to us before making an investment, so that we can help you make an informed investment decision.

Johnson Gibbs