Head of International at KraneShares Xiaolin Chen speaks to CGTN Europe about the investors' sentiment and the steps of policy makers.
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00:00 Well, let's talk now to Sharlene Chen, who's head of international at investment manager
00:03 Crane Shares. Good to see you, Sharlene. Welcome back to the program.
00:06 So what measures do you think the China Development Forum is sending this year?
00:11 It is a very important or interesting time to host this forum, as it's just right after the
00:20 NPC meeting concluded also this month. I think in some ways this is a follow-up forum, post-NPC,
00:27 if I may say, to offer another opportunity for the global investors to get clarity
00:33 on the economic growth target, on how and when and what else as a policy could be announced to
00:39 support the such announced economic targets at the NPC. In the statement released thus far,
00:47 I think it is confirmed the Chinese policy makers are very committed to deliver this economic target.
00:54 They remain very committed to provide sufficient equities to help the economic growth and most
00:59 importantly, the supportive measure is continued to be in play. The announced trillions of renminbi,
01:06 announced bonds, bond insurance is happening and will continue to happen. In those instances,
01:11 I think this is quite an interesting time in one. Second, it's almost like a follow-up post-NPC to
01:17 offer reassurance to global investors. Well, let's talk a little bit more about policy,
01:22 because obviously some policies will be focused on domestic investment, but what
01:26 policies do global investors want to see to enhance the way that they work with China?
01:31 Let's see any normal circumstances in any market with such pronounced economic,
01:40 pro-growth economic policy, sufficient liquidity issued of bonds and trillions of bonds supporting
01:46 different sectors and such announcement at NPC. It would be very sufficient for any investor to
01:53 get any market, but it seems that we have another lens to look at through China's capital markets
01:59 to require additional measures to be announced on the fairness side. They both top down and the
02:06 bottom up factors such as valuation. Today in China's equities, one way or the other, you look
02:11 at them from whatever the sector, state-owned private sector, namely public company, but owned
02:16 by private investors, are all at a very attractive valuation point. They all announce various levels
02:23 of stock repurchasing problem. I think we got to be fair on the Chinese governments that they are
02:29 doing everything they could to be manageable, to be orderly, to be constructively promoting the
02:35 economic. Global investors are clearly eagerly looking for more policy announcements. In my
02:41 opinion, looking back to the history, this kind of announcement announced by the government
02:46 satisfies very sufficient to any market. It's really down to the investor. Are they looking
02:51 for attractive valuation companies? Yes. Are they looking for supporting policies? Yes.
02:56 In those instances, China take all the boxes. Perhaps more specific measures to say which
03:02 industry which they are giving the statements such as electrical vehicles, renewable energies,
03:10 even some innovative technology signs and left reassurance companies, this and that. I think all
03:18 these measures you have in place should be very sufficient.