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B. G., Opalesque Geneva: Swiss private bank UBP says it has started rotating China positions towards asymmetric positioning, as geopolitical risks remain concerning.
Despite the 6-7% declines in China equity indices
in August, valuations still fall short of pricing the
economic risks ahead as
well as the increased geopolitical risks, said UBP in a report last week called "The end of the US-China trade war..".
UBP has started adopting asymmetric positioning in China, allowing
portfolios to participate in upside potential in markets
while establishing protection against downside risks.
"Without a re-pricing of valuations to better reflect
the uncertain growth and geopolitical outlooks, we believe
our 'asymmetric' approach, via select long-short China focused
hedge funds as well as partially capital protected
structured exposure allows us to participate should China
choose to deploy more significant stimulus than expected,
while limiting exposure should growth and/or geopolitical
concerns crystallise in the months ahead," the report concludes. And from a stock-selection perspective, UBP sees relative 'safe harbours' among education
leaders, healthcare, and telecommunications companies in
China.
Tariffs and currency
US President Donald Trump's August 1st announcement
that the US would impose 10% tariffs on the remai...................... To view our full article Click here
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