‘The Trump factor’: why China may benefit as investors diversify from US dollar assets
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A Singaporean investor suggests China may benefit from a global shift away from US dollar assets due to factors like the "Trump factor" and dollar weakness. Wong Kok Hoi, founder of APS Asset Management, believes investors are reassessing traditional safe havens, making China an attractive alternative. This assessment coincides with increasing attractiveness of Chinese equities, despite existing economic challenges. Institutions like BlackRock China and Fidelity International anticipate a gradual reduction in reliance on dollar-denominated assets over the next three to five years. They expect increased diversification towards China's market, citing its recovery, strong supply chains, and innovation capacity, leading to a potential rotation of capital into yuan assets.
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