Investors are heading to Asian markets in search of higher returns

China Stock Market – The Time To Buy Is Now – NOT IN A DECADE!!!

Investors are heading to Asian markets in search of higher returns

Low domestic yields are forcing some previously conservative European investors to look to Asian markets. This is due to high interest rates and the hope that the economic recovery in the region will be able to cope with possible defaults..

Unlike Europe or the US, Asian central banks did not set a floor for corporate debt prices.. 

«Investors are now looking for better deals to make up for their losses after the pandemic», – said Hayden Briscoe, Head of Asia-Pacific Fixed Income Division, UBS Asset Management.

Streams of private clients from Italy, Germany, Switzerland and the United Kingdom turned their attention to the Asian markets. Safe assets have been losing popularity since March this year.

China's economy, which dominates the region's high-yielding $ 260 billion market, is in better shape after the pandemic crisis.

Asia – this is the only region where Goldman Sachs Asset Management expects GDP growth this year.

«When you have a market that gives you sufficient profitability, it attracts business.», – He speaks Elizabeth Allen, Head of Credit Research Asia Pacific HSBC Global Asset Management.

The developed world is on the brink of a financial, economic, social and political crisis

Investors are heading to Asian markets in search of higher returns

«More and more investors, who have never looked towards Asia before, are starting to enter the eastern stock markets», – she added.

UBS, HSBC and Goldman, J. P. Morgan Asset Management, Pictet Wealth Management and Credit Suisse are optimistic about the outlook for Asian exchanges.

Apart from economic factors, investors attracted by the structure of the debt market in Asia, since the region is not so heavily dependent on the sectors that have been hit hardest by the coronavirus pandemic, such as energy, tourism and others.

At the same time, experts note that, of course, Asia is still a place where risky the behavior of companies in the financial markets can lead to collapse.

According to J. P. Morgan Asset Management, US and European investments in Asian bonds account for only about 16% of total.

Popular