Chinese investments predicted to perform well in 2007

Wed, 14 Feb 2007

People with investments in China may be reassured to hear that a stock market analyst has predicted share prices to remain buoyant in 2007.

Christian Deseglise, global head of emerging markets business at HSBC Investments, made the prediction in a wide-ranging performance review of the Chinese investments sector.

According to figures cited by Mr Deseglise, the equity market increased by a total of 83 per cent during 2006 in dollar terms.

And he has warned that there may be some fluctuations in share prices as a result of "short-term profit taking".

However, he claimed that in the longer term, many investments analysts expect China to offer attractive returns.

"Recently released macro data and leading indicators such as fixed-asset investment, consumption growth rates and the credit/money supply suggest that China's economic growth will remain healthy," he said.

China was one of six countries engaged in multi-lateral talks this week to address the issue of North Korea's nuclear ambitions.

Following the talks, North Korea announced that it will take steps to disband its nuclear complex at Yongbyon, in return for 50,000 tonnes of fuel oil or an equivalent amount of financial or humanitarian support.

The announcement raises the possibility of increased political stability in the region, which might reassure people who hold substantial Chinese investments.

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