For two Fidelity International fund managers, the Chinese government’s latest stimulus announcement was significant enough to buy more battered real estate stocks. Since late September, Chinese authorities have announced a series of gradual measures, ranging from interest rate cuts to extending financial support for completed construction of already sold apartments. “This policy change is very important in the sense that it is a well-coordinated policy.” [number of] Fidelity International fund manager Teresa Chou told CNBC in an interview on Wednesday that “we support the measures issued by government agencies at various levels,” adding that “its position in China has gradually increased. ” The company has so far focused on online platforms in the sector, but said a return to household confidence could pave the way for property prices to stabilize, especially in China’s big cities. She Zhou said she was concerned about a housing downcycle, given the relatively high inventory and declining housing prices from the end of 2023 to the beginning of this year. The company has not disclosed exact information. “We have selectively increased positions in blue-chip companies such as the consumer and real estate sectors,” Lee said. “In terms of the consumer and real estate sectors, we think they have been hurt by the macro challenges of the past few years.” [and with the policy turning, some] “We think experience-based consumption will continue to perform well,” he said, adding that one of Fidelity’s Greater China Fund’s top 10 holdings is a Chinese online booking platform. Trip.com McKinsey senior partner Daniel Zipser said in his latest assessment of Chinese consumer sentiment that real estate transactions rose 2% in October and the first half of November, the first increase this year. The company’s analysis of daily transaction data from 30 cities shows that “we can say that spending increased in October, creating positive momentum,” Zipser said. Nomura analysts said targeted trade-in subsidies to encourage purchases of home appliances and other big-ticket items boosted sales of panel TVs in China. said in November. 20 notes. They estimate that BOE and TCL Technologies’ TV production line utilization rates are likely to increase from October to November as a sign of growing demand. Nomura rates two Chinese electronics companies listed in Shenzhen as “buys.” Two Fidelity fund managers emphasized that their strategy focuses on selecting companies based on their individual competitive advantages. The two leaders added that it will take time to see the effects of stimulus measures, and said they would closely monitor government meetings in December and March for further policy details. China’s top leaders typically meet in mid-December to discuss economic plans for the year ahead. These measures and growth targets will then be announced at the March parliamentary session. “The positive change from that stimulus package is to remove tail risk and put a floor [under] “The market is cautiously optimistic,” Zhou said, adding that the earnings comments of major Chinese companies over the past two weeks underscored that it will take time to see the effects of economic stimulus. “It’s positive that we feel like Chinese companies are doing some better in terms of business confidence and expectations for next year,” Zhou said, adding that from a geopolitical risk perspective, China’s Companies and countries are building overseas supply chains and are better prepared for President-elect Donald Trump’s tariff threats now than they were a few years ago.
