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China’s Economy to Improve in Second Half, Neuberger Berman’s China Fund Manager Says

(Yicai Global) May 26 — China’s economy is expected to improve in the second half of the year despite weaker recent data, as the country still has enough policy space to provide follow-up momentum for the recovery, according to the manager of UK investment giant Neuberger Berman’s Chinese fund.

China’s economy has gone through the first stage of economic recovery and is in transition now, Wei Xiaoxue told Yicai Global, adding that the next key step is to improve internal vitality. The government is expected to introduce a series of policies in the employment, real estate, monetary, and finance areas among others, Wei said.

While the market expects Europe and the United States to potentially go into recession, China is recovering, though the misaligned cycles between manufacturing countries and demand countries will slow the process, she noted.

Chinese mainland-listed shares have fallen amid recent softer-than-expected economic data. In this regard, Wei said it is difficult to predict the trend, but some sectors, including the digital economy, high-end manufacturing, consumption, and high-scoring red and blue chips represented by banks, will likely gain.

Scientific and technological innovation is Wei’s most-preferred sector. In her opinion, the start of applications in artificial intelligence is worth paying attention to as it will drive the development of upstream hardware, bringing cyclical opportunities to the entire electronic manufacturing chain.

Wei joined Neuberger Berman Fund Management China, the investment management firm’s wholly foreign-owned fund company in China, in March as deputy general manager and chief investment officer of equity products. Its first equity fund product launched yesterday, with Wei as manager.

Source : YicaiGlobal