The threat of China invading Taiwan, long considered a highly improbable event, has moved to the center of global money managers’ risk radars and is factoring in their investment decisions, analysts say. | Reuters
Taiwan’s president, Tsai Ing-wen, has repeatedly pledged to uphold peace and avoid provocation. She has offered talks with China, but has also said Taiwan will defend itself if attacked.
He says many clients have asked how to think about it, and it is a risk his firm has been monitoring. “We are at similar levels compared to a year ago, following a spike after the Russian invasion of Ukraine. However, the level is relatively higher than the average in 2021,” said Alvin So, a strategist at Goldman Sachs.Spreads on Taiwanese 5-year credit default swaps have held at 176 basis points since last March, nearly 30 bp higher from where they were at the start of last year.
“If we want to maintain peace across the Taiwan Strait, we must resolutely oppose Taiwan independence, and we must resolutely maintain the one-China policy,” he said at the Munich Security Conference on Feb. 18.“Realistically, if there is ultimately a conflict between China and Taiwan, I think the ramifications are going to be far more severe than necessarily worrying about which company you should be holding in the markets,” Malcolm said. “Even if you parked all your assets in the U.S.
“If things stay stagnant, or escalate, what we’re going to pivot to is the more industrial and capex cycle on the reshoring trade … instead of owning global industrial companies that have exposure to China or elsewhere,” he said. “I’m going to go smaller, more domestic names, that would play into that capex cycle.”
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China says US 'endangered' peace with Taiwan Strait fly-throughTaiwan's forces track the aircraft as if flies through the strait, the ministry says, noting the situation was 'as normal.'
Read more »
Investors wary of Chinese assets as political risk ramps upMany large money managers are steering clear of Chinese assets, missing out on the nation’s post-COVID stock market rally in the latest example of strategic concerns trumping juicy returns. | Reuters
Read more »
Bohol governor in Israel to attract investorsBohol Gov. Aris Aumentado on Monday, Feb. 27, flew to Israel to attract more investors to the province.
Read more »
Investors to calibrate next move based on fresh economic signalsInvestors are expected to take cues from a fresh set of macroeconomic data this week as they gauge whether they will hold on to their positions or sell some of their holdings. Michael Ricafort,
Read more »
Chinese invasion of Taiwan may test US resolve - BusinessWorld OnlineA possible Chinese invasion of self-ruled Taiwan would be a litmus test for US commitment to its security allies including the Philippines, according to experts. READ:
Read more »
Income, spending in China grew far slower in 2022Income per capita in China grew by just 2.9 percent in real terms over 2022, after increasing by 8.1 percent a year earlier, returning to a growth rate similar to that of 2020 when China was battling COVID and introducing sweeping lockdowns. | Reuters
Read more »