Investment Conundrums: Newton CIO Custard eyes 'significant bounce back' for post-coronavirus China

Taking advantage of opportunities from "short-term market dislocations"

Mike Sheen
clock • 4 min read

Newton Investment Management funds have been adding to positions hit hard by the sell-off linked to the coronavirus, with the firm anticipating a "significant bounce back" in Chinese growth when the health crisis is brought to an end, according to CIO Curt Custard.

Despite market fragility as a result of the coronavirus, which is expected to restrict Chinese GDP growth by 1% to 2% in Q1 2020, the BNY Mellon Investment Management boutique is "seven-out-of-ten" bullish on risk assets, which would only be impacted by a sudden change in direction on central bank monetary policy, Custard explained. S&P forecasts hit to China's economic growth in 2020 from coronavirus The coronavirus sell-off saw the MSCI China fall by nearly 10% between 15 January, when the World Health Organisation issued its official statement, and 31 January. Having since recov...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Asia

Aviva Investors' Wakefield: Is Japan's stock-market sugar rush sustainable?

Aviva Investors' Wakefield: Is Japan's stock-market sugar rush sustainable?

New regulations to 'improve competitiveness'

Baylee Wakefield
clock 14 March 2024 • 4 min read
 abrdn's Yeo and Kwik: Will the dragon soar in 2024 for China?

abrdn's Yeo and Kwik: Will the dragon soar in 2024 for China?

'Cause to be optimistic'

Elizabeth Kwik and Nicholas Yeo
clock 09 February 2024 • 4 min read
What happened to China in 2023?

What happened to China in 2023?

Nine experts debate

Investment Week
clock 16 January 2024 • 5 min read
Trustpilot