Q: CHINA how bad is it ?Unemployment rising in 20 to 30 year age group Foreign companies pulling out . Housing a mess.
What can Government do to stimulate and change course. Is China investable at present. or avoid.
Chinas slowdown effects Oil and Copper prices Although Copper is in short supply
Your thoughts on CS Capstone
RAK
What can Government do to stimulate and change course. Is China investable at present. or avoid.
Chinas slowdown effects Oil and Copper prices Although Copper is in short supply
Your thoughts on CS Capstone
RAK
5i Research Answer:
Considering China's weakness, copper has been doing well. We still like CS, and the US interest rate pivot should help. Copper of course is also important for the EV and other growth sectors. We would be comfortable holding CS. We are not experts on the China economy. There is still growth, but not as much as expected. The retail sector has been hit hard. The government has plenty of firepower to support the economy, but there needs to be a return of confidence and population growth is needed just to maintain GDP above 0%. It may be a long recovery. Valuations on equities are very cheap. We think some exposure is warranted, but timeframe we think needs to be at least five years.