Market volatility exposed investors’ unease over China’s slowdown, but Rajeev De Mello says the country’s growth is stabilising and investors must choose the right assets for a gradual recovery.
Leading Schroders fund managers, covering a variety of asset classes and regions, share their insights on a difficult market environment.
The pain in emerging markets has been in the preparation for the Federal Reserve's lift-off, according to Rajeev De Mello, but the rate hiking cycle could be positive for the region.
Despite recent market events, not that much has actually changed in China. It’s more a case of the “chickens coming home to roost” as policy mistakes and major policy contradictions come to a head. Elsewhere in Asia, it could be an opportunity to pick up equity bargains.
The dramatic fall in the cost of oil should help countries in Asia like India keep control of inflation, interest rates and fiscal policy and could boost economic growth, says Rajeev De Mello.
Chinese GDP came in below market expectations, but in line with our forecast, at 6.8% year on year in the final quarter of 2015. This brings 2015 growth to 6.9%, in line with the official target of “around 7% growth”, but highlights the challenges faced by the authorities in propping up growth.
The outlook for China’s economy remains opaque, but Craig Botham says recent market volatility has been driven by technical factors and a big devaluation for the currency remains some way off.
China's equity and currency markets have exhibited a great deal of weakness since the start of 2016, and just as in August, global markets have suffered. But should global investors be quite so concerned about China?
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