by Xinhua writer Liu Yanan
NEW YORK, Sept. 24 (Xinhua) -- Chinese stock and bond markets continue to offer investment opportunities for international investors, an expert with a U.S. research firm told Xinhua recently.
The MRB Partners on Thursday confirmed an overweight rating on Chinese stocks within an emerging market and global equity portfolio within the next six to 12 months, said Mehran Nakhjavani, a partner of emerging markets with the MRB Partners.
The confirmation is based on domestic investor positioning support, oversold conditions and likely policy announcements that will provide monetary and fiscal policy cushions, Nakhjavani said.
"On a 10-year horizon, China also offers solid prospects for both stock and bond market investors, based on its continued transition to a high-income and high-productivity economy," he added.
Nakhjavani said it is important to distinguish between the somewhat hysterical reactions of prominent investors, politicians and media outlets, and the aggregate investment decisions of foreign investors.
"The former seem to be tainted by a cold war mentality relating to China, whereas the latter suggest that investments in China are still regarded as an important part of a global multi-asset portfolio," said Nakhjavani.
"The fact that G7 (Group of Seven) bond markets have been manipulated by policymakers for more than a decade has helped to raise the profile of CNY as a safe haven currency, supported by a liquid and predictable bond market," said Nakhjavani.
In addition, China's opening-up policy serves its own long-term interests and will continue to be adopted, according to Nakhjavani. Enditem
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