News

China growth uptick raises faith in yuan

Made_in_ChinaBetter-than-expected Chinese growth in the first quarter has led some analysts to suggest the renminbi is undervalued. Official figures say the Chinese economy grew at a pace equivalent to 6.9% a year in the first quarter, an improvement over most estimates. According to Jameel Ahmad of brokerage FXTM, the growth indicates the renminbi is oversold. “I don’t believe there is any justification for a currency belonging to an economy that is growing at levels close to 7% to be valued at such historically low levels,” he said. Other commentators maintained a prediction of further depreciation of the Chinese currency, but at a slower pace. Aidan Yao, an economist at Axa Investment Managers, predicted that a dollar would be worth between 6.9 and 7.1 yuan by the end of the year, implying a relative depreciation in the Chinese currency of about 2%. His firm had previously predicted a dollar-to-yuan ratio of between 7.1 and 7.3 by the end of 2017. ©2017 funds global asia

Executive Interviews

INTERVIEW: Making a name

Apr 18, 2018

Formed by a merger in 2012, Old Mutual Global Investors was little-known in Asia. Carol Wong, managing director for Asia-Pacific, is changing that. She talks to George Mitton.

INTERVIEW: Joining the family

Dec 12, 2017

An acquisition has increased the visibility of Natixis investment managers in Australia. George Mitton talks to its local chief executive.

Roundtables

SINGAPORE ROUNDTABLE: Small nation, big ambitions

Apr 18, 2018

Our cross-industry panel discussed fund passporting, robo-advisers and the potential of a new investment structure, the S-Vacc. Chaired by George Mitton in Singapore.

REAL ESTATE ROUNDTABLE: In search of a home

Jul 17, 2017

From Korean warehouses to Chinese hospitals, investors’ holding periods are growing in Asia. But in a market awash with liquidity, so is competition for assets. Our panel in Hong Kong discuss real estate investment.