Beijing: Chinese assets have gained attention from investors amid rising geopolitical tensions and volatility in global financial markets, with analysts pointing to their relative stability compared to major international indices.
Recent tensions have pushed international oil prices higher, raising inflation concerns and affecting expectations around monetary policy easing by major central banks. The resulting uncertainty has weighed on global equities across key markets.
Major US indices, including the Dow Jones Industrial Average, Nasdaq and S&P 500, recorded declines of around 7 to 8 percent during March, while Japan’s Nikkei 225 and South Korea’s KOSPI fell more sharply.
In comparison, China’s benchmark indices, including the Shanghai Composite and Shenzhen Component, posted smaller declines over the same period, indicating relative resilience.
Currency and market performance
In the foreign exchange market, the Chinese yuan strengthened by more than 1 percent against the US dollar in the first quarter, outperforming several other non-dollar currencies.
Market analysts said this performance reflects a combination of policy stability and economic fundamentals, which have supported investor confidence during a period of global uncertainty.
Factors supporting Chinese assets
Analysts at major financial institutions, including Morgan Stanley and Goldman Sachs, noted that China’s policy consistency, economic structure and industrial capacity are contributing to its market stability.
They highlighted that Chinese equities, particularly A-shares, have shown lower volatility compared to other markets, offering diversification benefits to global investors.
China’s reduced dependence on imported energy and its expanding use of domestic and renewable energy sources were also cited as factors helping cushion the impact of rising oil prices.
Outlook for investors
Experts said ongoing geopolitical risks and economic uncertainties could increase demand for assets with lower volatility and weaker correlation to global shocks.
They added that sectors linked to energy alternatives, supply chains and advanced manufacturing in China may continue to attract investor interest in the near term.
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