UBS Securities, the Chinese securities arm of Swiss investment bank UBS, is holding its 19th seminar on A-share market in Shenzhen, gathering more than 1,000 participants as well as over 110 Chinese companies.
The two-day event features 18 panel discussions that are set to delve into issues such as A-share market investment strategies and economic prospects of the country.
In his opening speech yesterday, Qian Yujun, president of UBS China and chairman of UBS Securities, said that in recent years, China’s financial markets have accelerated its pace of opening up and witnessed constantly renewed milestones in its course of internationalization, with far-reaching policies such as QFII (Qualified Foreign Institutional Investor) reforms being adopted.
“This year, the financial stability and development committee under the State Council once again delivered an important message to boost market sentiment. China’s economic development has gained international attention, and international investors remain keen to invest in China’s capital markets and view Chinese assets as an important part of their asset allocation,” said Qian. “In the second quarter of this year, the stock connect programs reversed the trend of net outflow seen in the first quarter to record a net inflow of 96.1 billion yuan (US$13.9 billion).”
Meng Lei, an analyst with UBS Securities, predicted in his speech yesterday that China’s A shares will undergo volatile days in September as some of the listed companies are expected to unveil their barely satisfactory second-quarter financial results in the upcoming one or two days. But regarding the longer term, especially towards the end of the fourth quarter, Meng is optimistic, although sluggish investment, consumption and exports are exerting a downward pressure on the economy.
“It takes time for support policies to have an effect,” he said. “With more supportive measures put in place, more funds are expected to be channeled into the capital market, which will prop up the market.”
Meanwhile, overseas investors remain highly interested in investing in China when considering China’s economic growth in contrast to inflationary pressure and recession risks seen elsewhere in the world, Meng said.
Qian said UBS Securities, which became the first foreign-invested fully-licensed securities firm in China in 2007, hopes to play a bigger role in assisting overseas investors with accessing the Chinese market and enabling more Chinese companies to reach the international market.