Principal Continues To Explore Long-Term Investment Opportunities In China

KUALA LUMPUR, Aug 19 (Bernama) -- Principal Malaysia continues to explore long-term investment opportunities in China’s economy as optimism grows in the republic amid easing COVID-19 restrictions, gradual increase in economic activities and returning consumer confidence. Chief investment officer, equities, Southeast Asia Patrick Chang said the scale and variety of the opportunities offered are compelling to investors, and from a longer-term perspective, investing in China remains attractive as it is cheap, under-owned and has a catalyst for rerating. “Trending equally important is the divergence with China’s economic pattern from other markets, both in emerging and developed regions – for example, inflation, because it is not a major problem, China is able to stay accommodative in its monetary and fiscal policies while the rest of the world tightens. ‘’We’re optimistic with our strategy to focus on visible yields and encourage investors to take advantage of this investment opportunity in funds with exposure in China,” he said in a statement Friday. Chang said the United States and Europe’s Consumer Price Index (CPI) hit a high of 9.1 per cent and 8.9 per cent respectively in July, while China’s CPI stood at just 2.7 per cent. In addition, China’s equities continue to trade below their historical average with earnings growth still remaining resilient, while the market has corrected in the last 18 months, the longest in the last 14 years since 2008, outlasting a typical bear market period of nine to 12 months. ‘’With greater optimism around China on the back of loosening COVID restrictions and gradual increase in economic activities and returning consumer confidence, Principal’s China-related funds could benefit from the potential growth it presents,’’ he said. Chang said Principal is introducing the “Invest in China” promotion that allows investors to take advantage of its award-winning China-related funds. The funds include Principal China Direct Opportunities Fund, Principal Greater China Equity Fund, Principal Islamic Asia Pacific Dynamic Equity Fund, Principal Asia Pacific Dynamic Growth Fund, Principal Asia Pacific Dynamic Mixed Asset Fund, and Principal Asia Pacific Dynamic Income Fund. -- BERNAMA