Despite market volatility, the country’s underlying economy is relatively sanguine. Investing requires time, patience and diversification is the advice that a financial veteran offers to investors whose eyes are fixed on China’s equity market.
Because of the A-share’s inclusion into the MSCI Emerging Market index, more capital with long-term commitment will enter the market. However China’s stock market has gone through a volatile year, which also had a ripple effect on the global market.
China has sent a clear message that its growth will decline, but in aggregate the economy is still very strong and with high quality of growth compared to other countries. If you look deeper, there’s some overcapacity in the manufacturing sector. But what has taken place is a transition towards much stronger service economy with better quality of growth and much of that being built by private enterprises and long-term sustainable business development.
Rani Jarkas, Chairman of Cedrus Investments, an investment pioneer with years of financial experience in Asia, added, “In terms of market valuation and whenever investors see this kind of volatility, clients with diversified portfolios that include fixed income, equities, commodities and other alternative asset classes will outperform the market. Moments like this remind clients of the importance of diversification.”
Rani Jarkas, the Chairman of Cedrus Investments.
Rani Jarkas is a highly experienced financial services executive, with over 20 years of international banking experience. Currently, Mr. Jarkas is the Chairman of Cedrus Investments, a global boutique investment firm. Cedrus’ domain expertise is in life sciences, natural resources, energy, cleantech and nanotechnology. – Rani Jarkas