Future looks rosy for wealth management

Business | Eurus Yiu and Winnie Lee 10 Jul 2020

Standard Chartered Hong Kong gave a positive forecast towards risk wealth management, especially corporate bonds and high-yield bonds in the mature market, apart from the stock market.

The bank believes Hong Kong will see a similar recovery to that of 2008 when the return rate of corporate bonds outperformed the stock market. The bank also expects the Chinese stock market to perform better than the Hong Kong market. It forecasted that the gold price could reach its highest level since 2009 at US$1,911 (HK$14,906).

Refinitiv noted that the global money market funds received the largest fund inflows during the first quarter, especially the US market, and suffered a significant net outflow of US$122,334 in June.

The agency believed that the equities may continue suffering funding outflows.

Vanguard, meanwhile, said the US economy would take two years to recover while the Chinese economy may be back to pre-pandemic levels during the third quarter.

The agency said Chinese economic growth in the second half may rise by 4 to 5 percent year-on-year, while the annual economic growth could reach up to 2 percent.

In other news, UBS Global Research assessed the scenario of Joe Biden winning with a Republican Senate will push equity prices up 2 to 4 percent; a status quo would result in equity somewhat higher shortly after the election, with a stronger US dollar; and a Democratic Party sweep would see equities fall at least 2 to 5 percent over tax concerns.

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