China is recovering, but slower than investors hoped: Strategist
03/20/2024 00:05
As concerns over China's economic trajectory linger, there are signs that a gradual recovery may be underway. KraneShares CIO Brendan Ahern joins Yahoo Finance Live to discuss the outlook for the Chinese market. Ahern acknowledges that China's economic recovery is progressing at an "incremental" and slow pace. He points out that China's fear of accumulating further debt has prevented it from implementing "major fiscal stimulus." However, he highlights that Chinese consumers are increasing their spending on sectors like restaurants and travel, which he believes "will broaden out to other areas." Regarding investment opportunities, Ahern suggests that investors can gain exposure to China through "great US multinationals" such as Apple (AAPL) or Starbucks (SBUX). However, for investors seeking to be "explicitly" involved in the Chinese market, he recommends focusing on growth sectors of the economy. These include domestic consumption, clean technology, and semiconductor plays. Ahern also touches on the real estate sector, which has been weighing heavily on markets and dampening domestic consumption. Despite the pressure on the real estate industry in China, Ahern expresses confidence that the Chinese government "won't allow a financial crisis to occur" stemming from this sector. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith
As concerns over China's economic trajectory linger, there are signs that a gradual recovery may be underway. KraneShares CIO Brendan Ahern joins Yahoo Finance Live to discuss the outlook for the Chinese market.
Ahern acknowledges that China's economic recovery is progressing at an "incremental" and slow pace. He points out that China's fear of accumulating further debt has prevented it from implementing "major fiscal stimulus." However, he highlights that Chinese consumers are increasing their spending on sectors like restaurants and travel, which he believes "will broaden out to other areas."
Regarding investment opportunities, Ahern suggests that investors can gain exposure to China through "great US multinationals" such as Apple (AAPL) or Starbucks (SBUX). However, for investors seeking to be "explicitly" involved in the Chinese market, he recommends focusing on growth sectors of the economy. These include domestic consumption, clean technology, and semiconductor plays.
Ahern also touches on the real estate sector, which has been weighing heavily on markets and dampening domestic consumption. Despite the pressure on the real estate industry in China, Ahern expresses confidence that the Chinese government "won't allow a financial crisis to occur" stemming from this sector.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Angel Smith