UBS AM: ‘The West can learn from China’s corona outbreak approach’

There have been upward trends in economic activity in China following Chinese New Year. Though yet to reach the same activity levels as last year, trends in traffic congestion and property sales offered some evidence that activity in China’s economy is beginning to return to normal. Geoffrey Wong, Head of Emerging Markets and Asia Pacific Equities, Hayden Briscoe, Head of Fixed Income, Asia Pacific, and Projit Chatterjee, Senior Investment Specialist, Emerging Markets and Asia Pacific Equities, answered these questions and more during an exclusive webinar.

Key takeaways:

• The reaction to the outbreak has varied across countries as they have traded controlling the outbreak and fatalities on one side with the economic impact of the control measures on the other.
• China and some other Asian countries have weighed more on the side of control – wisely it now seems – because as the outbreak has escalated globally, a significant near-term economic impact is inescapable.
• However, China also gives us hope that the outbreak can be controlled and slowed down. And hence this crisis too shall pass.
• And while markets have understandably reacted negatively, that should not make us ignore the structural trends in China and emerging markets, and how some of these are accelerating and creating long-term investment opportunities.
• There is a compelling case for a dedicated strategic allocation to China - China Equity and Fixed Income offer very large hunting grounds for alpha and yield - and the world remains very underinvested in both.

Here you’ll find the full report ‘Coronavirus: what can we learn from China‘