Investor Alert: India, China far more exciting than developed world - Firstpost
HSBC Global Asset Management (HSBC) has said emerging markets (EMs) including China, India and Indonesia will continue to outperform developed world economies in 2013 and 2014. This is because the developed markets are plagued by problems like on-going fiscal pressures, weak consumption and high unemployment rates.
This assessment is based on HSBCs latest investment quarterly update for the second quarter of 2013.
HSBC expects EMs will continue to grow at a healthy differential relative to the developed world in 2013 and 2014 yet at a slower pace than in the 2000s as a number of the larger economies begin to mature and China, in particular, struggles to grow led by consumption rather than net exports and investment, a statement from HSBC said.
In this context, emerging market equities are poised to outperform bonds in the long term, supported by strong and sustainable corporate profitability and the appreciation potential of emerging markets currencies.
Herve Lievore, Senior Macro and Investment Strategist at HSBC Global Asset Management said, As emerging markets have outgrown the developed world, their global influence has also increased, resulting in a shift in the centre of the global economy. Investors should be wary of caveats which include the on-going eurozone crisis, US fiscal adjustment, risks to Chinas growth outlook and potentially asset price bubbles from excesses that will inevitably get in the way from time to time.
Bill Maldonado, Regional Chief Investment Officer, Asia Pacific at HSBC Global Asset Management said, The takeover by emerging markets as the global growth engine drives investors to focus on emerging markets and look for long term investment opportunities. We continue to favour emerging market equities especially those in Asia including China and India, due to low valuations and supportive corporate profitability. Corporate bonds, in particular high yield bonds look more attractive than government bonds as they offer higher yield.
HSBC Global Asset Management (HSBC) has said emerging markets (EMs) including China, India and Indonesia will continue to outperform developed world economies in 2013 and 2014. This is because the developed markets are plagued by problems like on-going fiscal pressures, weak consumption and high unemployment rates.
This assessment is based on HSBCs latest investment quarterly update for the second quarter of 2013.
HSBC expects EMs will continue to grow at a healthy differential relative to the developed world in 2013 and 2014 yet at a slower pace than in the 2000s as a number of the larger economies begin to mature and China, in particular, struggles to grow led by consumption rather than net exports and investment, a statement from HSBC said.
In this context, emerging market equities are poised to outperform bonds in the long term, supported by strong and sustainable corporate profitability and the appreciation potential of emerging markets currencies.
Herve Lievore, Senior Macro and Investment Strategist at HSBC Global Asset Management said, As emerging markets have outgrown the developed world, their global influence has also increased, resulting in a shift in the centre of the global economy. Investors should be wary of caveats which include the on-going eurozone crisis, US fiscal adjustment, risks to Chinas growth outlook and potentially asset price bubbles from excesses that will inevitably get in the way from time to time.
Bill Maldonado, Regional Chief Investment Officer, Asia Pacific at HSBC Global Asset Management said, The takeover by emerging markets as the global growth engine drives investors to focus on emerging markets and look for long term investment opportunities. We continue to favour emerging market equities especially those in Asia including China and India, due to low valuations and supportive corporate profitability. Corporate bonds, in particular high yield bonds look more attractive than government bonds as they offer higher yield.
