Opportunities arising from China recoveryBusiness | 26 Jan 2021 6:08 pm
China’s annual growth will be robust at 8 percent while a full global recovery is unlikely until the second half of 2021, an asset manager predicts.
Franklin Templeton said, China’s world exports share is at an all-time high driven by faster industrial production recovery. The manufacturing PMI data reached multi-year highs in the fourth quarter of 2020.
There is domestic-driven recovery in China, with consumer spending and leisure-related activities increasing in part due to domestic tourism and duty-free luxury spending
Economic policy will likely focus on normalization, including deleveraging, removing excess stimulus via credit contraction and internet regulations, while the long-term reform agenda remains on track.
Opportunities will arise in the acceleration of Chinese tech adoption and innovation, digitization, consolidation, consumer premiumization and carbon neutrality.