homemarket NewsThis Credit Suisse analyst thinks China is a bright spot despite COVID surge — here’s why
market | Dec 20, 2022 12:43 PM IST

This Credit Suisse analyst thinks China is a bright spot despite COVID surge — here’s why

Mini

Credit Suisse's Co-Head of Equity Strategy for Asia Pacific Dan Fineman thinks while developed markets head towards slowdown, China will March towards growth despite COVID surge.

On a day World Bank slashed China's growth forecast from 4.3 percent to 2.7 percent, Credit Suisse's Co-Head of Equity Strategy for Asia Pacific Dan Fineman said even while developed markets head towards a slowdown, China would March towards growth despite the latest Covid surge.

Recommended Articles

View All

“China is still the best story. The valuations are actually quite cheap, even after this great rally they had in November, the multiples are still at a deep discount relative to the rest of the region and relative to global equities. Our clients are still underweight on China, but they are interested in playing into this cyclical recovery,” Fineman told CNBC-TV18 on Tuesday.
World Bank cited Covid lockdowns across cities and weaknesses in the real state sector to pare China's growth forecast. It also revised its forecast for next year from 8.1 percent to 4.3 percent.
Fineman said everyone is hoping the outbreak is as mild as possible. "They have lifted the zero COVID restrictions much quicker than we had anticipated, but it is not leading to a quick normalisation of consumption behaviour,” he said.
Speaking about the US markets, Fineman said a slowdown in the US could benefit Asia, adding that a weaker dollar is an important channel via which emerging markets benefit when the US market slows down.
According to him, the economic downturn in Asia would not be severe and Indonesia, Thailand and the Philippines would be preferred markets.
For more details, watch the accompanying video
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng