John Bilton, head of global multi-asset strategy at JPMorgan Asset Management spoke with CNBC.
He said not dismiss China as an investment:
“I don’t think you can treat the world’s second-largest economy as either an alternative investment or un-investable, that would be wide of the mark”
But he does have concerns:
- pressures from deflation
- lacklustre economic data
- economic slowdown
- struggling property market
- uncertainty around monetary policy
- a shrinking labor force
On that last point:
- China’s declining population means the labor force is also shrinking – and labor force is the biggest factor when it comes to economic growth
- This means the other drivers of economic growth are being asked to do “a lot of heavy lifting”
