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Paul Bloxham, Chief Economist, HSBC, ANZ, a speaker at the marcus evans Institutional Investors APAC Summit 2012, discusses how Asia is driving global growth and how investors should take action to gain expertise in this area. |
London, Oct 30, 2012 - (ACN Newswire) - Investing in commodities will expose investors to strong emerging markets and to the evolving Chinese economy, says Paul Bloxham, Chief Economist, HSBC, ANZ. This is part of the process of better risk management, he adds.
A speaker at the upcoming marcus evans Institutional Investors APAC Summit 2012, in Macao, China, 29 - 31 October, Bloxham provides insights into how investment portfolios in Asia can be better diversified by keeping an eye on the cycle driven by the West.
- What market and pricing conditions may come out of the Australian commodities boom?
The run-up in commodity prices has now peaked and it has driven up the Australian dollar. As a result, a large amount of investment has been made in the mining sector and commodity exports are expected to rise as a result.
In an effort to absorb these large investments without allowing inflation to rise, other parts of the Australian economy have had to slowdown to make way. Now that the mining story is starting to fade, we foresee a rebalancing of growth over the next year or so. Weaker parts of the economy will get the chance to catch up due to the wearing off of the high Australian dollar effect on the economy. Another factor that will contribute to this is the cutting of interest rates below neutral by the Central Bank. Other sectors outside of mining will gain strength from these developments.
- How can commodities help diversify a portfolio?
Asian economies are at a commodity-intensive growth phase of their development. This intensity will mean that commodity prices will remain high. Investing in commodity markets exposes investors to these strong markets, especially to the evolving Chinese economy. Better risk management will also derive from these actions.
When investors are dealing in long-term trades, they need to consider that the investment cycle is being driven by events in both the West and in Asia. The two are also interconnected, with events in the West also impacting Asia.
- What suggestions can you give to investors to successfully face macroeconomic issues after the global financial crisis?
This is a very difficult task at the moment. An understanding of the shift in global growth is needed as it is driven by the emerging economies and especially China. Investors will need expertise in how these economies are tracking in order to have a globally-broad macro portfolio. China is becoming more locomotive in terms of global growth and this is where investors should focus their knowledge if they want to get a piece of the pie.
- Is there any other advice you would like to share with institutional investors in the APAC region?
Domestic demand in Asia will become a large driver of global growth. Investors should gain expertise in the Chinese economy, its currency and be aware of the developments in its internationalisation. They need to investigate how a globally-balanced portfolio can be created. Investing in products that represent the growth performance of Asian economies, such as in the Australian market, may be a trend to consider, as it is liquid and fairly exposed to the Chinese success story.
Institutional Investors APAC Summit 2012
This unique forum will take place at the Venetian Macao Resort Hotel, Macao, China, 29 - 31 October 2012. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes visionary presentations and interactive forums on the macroeconomics of market disruptions, the regulatory reform after the financial crisis and investigating the Chinese bubble to reveal opportunities for risk mitigation and growth. For more information please send an email to info@marcusevanscy.com or visit the event website at www.iiapacsummit.com/PaulBloxhamInterview.
marcus evans group - investment sector portal: http://tiny.cc/4QCf2b
The Investment Network - marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations. - LinkedIn: www.linkedin.com/groups?mostPopular=&gid=3937929&trk=myg_ugrp_ovr - YouTube: www.youtube.com/MarcusEvansInvest - Twitter: www.twitter.com/meSummitsInvest - SlideShare: www.slideshare.net/MarcusEvansInvest Please note that the Summit is a closed business event and the number of participants strictly limited.
Contact:
Maria Gregoriou
Journalist, marcus evans, Summits Division
Tel: +357 22 849 400
Email: press@marcusevanscy.com
Topic: Research / Industry Report
Source: marcus evans Summits
Sectors: Daily Finance, Daily News
http://www.acnnewswire.com
From the Asia Corporate News Network
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