Chen Zhiwu, a chair professor of finance at the University of Hong Kong, said headwinds such as risks of a global recession and US-China tensions would continue to exert “extraordinary pressures” on China’s hi-tech push. “The US tech war has largely thwarted Chinese tech companies’ [initial public offering] opportunities. Even if these tech manufacturers succeed in going public, the potential sanctions would affect their market valuations,” said Chen. He added China’s weak economic momentum is also weighing on the market’s overall willingness to invest, with hi-tech manufacturing just one element. “The rapid development of hi-tech industries over the past 20 years has provided China with a massive boost to its economic boom, this was partly due to the impact of a stable external environment on investor confidence,” Chen said.
17 Jan 2024
Chen Zhiwu, chair professor of finance at the University of Hong Kong, said the pause by the US Federal Reserve, and possible cuts, could be positive for China’s exports but not its financial markets. “The news means more US stock market and bond market upsides in the coming years, possibly luring more capital out from China,” said Chen, adding the US economy could continue to cool further but is unlikely to slip into a serious recession.
18 Dec 2023