Investorideas.com

Call 800 665 0411 to learn about our services for your stock

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS




Share on StockTwits

China is now both a major headwind AND tailwind for global investors

 

February 21, 2023 (Investorideas.com Newswire) China represents both major headwinds and tailwinds for global investors for the remaining first half of 2023, affirms the CEO and founder of one of the world's largest independent financial advisory organizations.

The analysis from deVere Group's Nigel Green comes after China's foreign minister called on countries to "stop fuelling the fire" in Ukraine ahead of the first anniversary of the war on Friday, and as US President Joe Biden made a surprise visit to Kyiv this week.

It also follows US officials addressing the heightening tensions with China on Sunday after Secretary of State Antony Blinken met with Beijing's top diplomat, Wang Yi, in Germany to discuss what it calls China's high-altitude spy balloon and the nation's approach to sending "lethal aid" to Russia.

Nigel Green says: "Whilst inflation remains an issue, China is now front and centre in investors' minds.

"Currently, China represents both the major headwinds and tailwinds for global investors for the remaining first half of 2023 at least."

The headwinds

"On the back of Biden's trip, amongst other factors, China is accusing the US and Western allies of escalating tensions in Ukraine," explains the deVere CEO.

"Meanwhile, US Secretary of State Antony Blinken has said Chinese firms were already providing 'non-lethal support' to Russia and new information suggested Beijing could provide 'lethal support' - which has been strongly denied by China.

"There are also real concerns amongst US allies about a possible military conflict between China and Taiwan, over which Beijing claims sovereignty."

He continues: "In addition, there are broader worries about the decoupling of China and the US.

"There remains a deep economic interdependence between the United States and China, which has been growing for decades. But this appears to be slowing. We see this in the slowdown of commerce and investment, knowledge-sharing, and smaller global value chains, amongst other issues.

"The deceleration appears to have gained momentum amid the United States' push to 'contain' China in terms of the strategic competition between the two. Also, President Xi Jinping recently reasserted China's focus away from rapid growth and toward national self-sufficiency.

"All of these headwinds create uncertainty for investors around the world."

The Tailwinds

"China's faster-than-anticipated reopening after Covid-19 restrictions is going to deliver a major boost to the economy of China, which is the world's second-largest, and global growth.

"The rebound will be delivered by significantly bolstering domestic Chinese demand which, in turn, will help regional economies given that neighbouring countries export more to China than many in the West.

"The reopening will positively impact commodity demand and prices, which will help many net exporters.

"Global growth will also be fuelled by renewed demand for international travel - and the associated economic benefit of it - to and from China."

Nigel Green concludes: "As Beijing seeks to position itself as a force for peace between Russia and Ukraine, and as the economic superpower reopens following years of Covid restrictions, China is being watched with interest from global investors."

t: +44 207 1220 925
e: george@priorconsultancy.co.uk
Twitter: @PriorConsults

deVere Group is one of the world's largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

More Info:


Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp


That's all it takes to get an article published on Investor Ideas - Learn More