Update on Investment Outlook in the Chinese Market and Recommended Chinese Funds for 2025
Greetings to all investors. With the Chinese New Year approaching, Muang Thai Life Assurance has some great updates
to share regarding investment perspectives in the Chinese stock market, strategies to manage Chinese funds that have nearly hit a crisis, and top-recommended Chinese funds for early 2025 to revitalize stagnant portfolios. All this is available on MTL MyFund, starting at just 500 Baht
Investment Outlook
It is well known that the Chinese stock market has been stagnant for a long time, leaving many investors stuck with Chinese funds with little choice but to endure. However, there have been some positive developments. In 2024, the Chinese government implemented extensive fiscal and monetary stimulus measures, including policy interest rate cuts, liquidity injections, and other actions worth trillions of yuan. The initial result was a +12.67% increase in the Chinese stock index (referencing the SSEC index). This indicates that the market has likely passed its lowest point and may gradually recover in the future.
However, as we all know, towards the end of 2024, other major issues emerged that disrupted the recovery of the Chinese stock market. The U.S. presidential election was one such factor. The winner, Donald Trump, clearly announced policies to impose heavy import tariffs on Chinese goods. This placed significant negative pressure on China, one of the U.S.'s main trading partners, causing the recovering Chinese stock market to stall to some extent.
How to manage it?
At this point, it is believed that the U.S. measures to pressure China may not be as severe as many fear. For example, while the campaign promised a 40% increase in import tariffs on Chinese goods, the actual implementation might not reach that level. This is because such an increase would also impact the U.S. economy, as it is a major importer of Chinese goods. Furthermore, there is a high chance that the Chinese government will introduce additional stimulus measures.
As a result, investors holding Chinese funds (or those experiencing losses) should not panic or decide to sell at a loss. It is recommended to continue holding onto these investments (another reason being that the Chinese stock market has already adjusted downward in response to the news, making selling now untimely). Additionally, given the relatively low fundamental value of Chinese stocks and their overall good growth potential (GDP growth of 5%+), the stock market is expected to gradually recover. However, returning to previous peak levels may take considerable time.
However, for those who do not yet have Chinese stock funds or want to invest more in them to average out losses, you can now choose from the recommended funds. These include the top 3 active Chinese funds managed by world-class fund managers or top 3 passive Chinese funds that grow alongside Chinese stock market indices. Available today, starting at just 500 Baht on MTL MyFund.
Active Chinese Funds.
Invest in funds managed by world-class fund managers,
featuring the top 3 with outstanding returns.
Passive Chinese Funds.
Invest and grow with the top 3 Chinese
stock market indices offering outstanding returns.
Warning: Investments are risky. Investors should study products, return conditions, risks and tax benefits in the investment manual of such funds before making a decision to invest. Past performance of the fund is not a guarantee of future results.