Why wait for the U.S.-China trade deal to invest?

Investors are on the sidelines amidst the trade negotiations and a slowing Chinese economy - they shouldn’t be

Andrew Willis 19 February, 2019 | 6:00PM

With the theatre of ongoing trade negotiations and the suspense of slowing economies, many investors are left wondering how and when to seize opportunities to enter a Chinese market with quadruple the population of consumers.

Trade negotiations between the U.S. and China have improved significantly over the past few months, from a likeness to a cold war as recently as November, to meaningful meetings between officials and gestures of goodwill recently that go beyond a March deadline. World markets are responding very positively, and it may be a sign that it’s worth getting invested before the final handshake occurs.

Regina Chi, Vice-President and Portfolio Manager at AGF Investments is based in Toronto and covers emerging markets, with an overweight allocation to China in her AGF Emerging Markets Fund. She says that avoiding a 25% tax on US$200bn in goods traded is going to have broad benefits for both sides.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
ENN Energy Holdings Ltd ADR44.80 USD-0.20
Guangshen Railway Co Ltd ADR9.66 USD-1.43
Ping An Insurance (Group) Co. of China Ltd ADR19.55 USD-0.05

About Author

Andrew Willis

Andrew Willis  Andrew Willis is a content editor for Morningstar.ca.

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