No banking crisis for China
Robert Swift, Head of Global Equity Strategies at Tamim Asset Management is in the camp that believes that Chinese policy makers have been misunderstood. “Chinese policy makers are trying to rebalance the economy towards a much more stable diversified structure whereby domestic demand / consumer demand pick up the slack from an inevitable decline in net exports…As we look at China in terms of its budget position and the level of indebtedness in the economy, there will be no banking crisis in China...This is a hiccup and a buying opportunity on the path to full global citizenship.” This rebalancing of the Chinese economy will be beneficial to some and detrimental to other sectors of the Australian economy. Swift sees coal producers continuing to struggle as China lifts its expenditure on alternative energy and favours domestic producers. The rebalance may present opportunities for Australian retailers and financial services companies. Watch the video below to find out which Australian public company in the retail space Swift likes.
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