Looking ahead at the prospects for Chinese stocks, Allianz Investment's Asia-Pacific Chief Equity Investment Director highlighted two major catalysts: policy support and pension reform.
First, if the impact of U.S.-China tariffs diminishes, he expects the Chinese government to roll out more supportive policies. Second, he advocates for pension reforms in China to encourage households to shift more savings toward consumption.
He emphasized that investing in Chinese stocks does not equate to investing in China's domestic economy, as many Chinese companies are multinationals with global operations. Many of these firms, particularly in the new consumer sector, demonstrate strong international competitiveness.
Regarding AI development, he noted that it extends beyond chip manufacturing to include product applications. While the U.S. excels in groundbreaking inventions, China is adept at commercializing technology.
He remains optimistic about Chinese tech firms, citing their efforts to reduce reliance on foreign technology—such as in semiconductors—through self-developed innovations. Valuations for Chinese tech stocks remain relatively low, with particular optimism for the biotech sector, which is leveraging AI for drug testing and enjoys significantly lower supply costs compared to the U.S., while also achieving commercialization.
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