Investors must adopt overweight positions in gold and Chinese stocks, as expectations of these assets remain positive despite the short -term challenges, according to Investment China International Corporation (CICC).
While concerns about the extended evaluations of the golden and Chinese errors appeared after the recent gatherings, strategists in the CICC Research Unit said that both assets provided the potential of growth and the value of diversification.
The price of gold increased by more than 10 percent this year to nearly 3000 USD, after an increase of 26 percent in 2024 – the largest gain in 14 years. Lee Zhao, chief asset associate expert at Cicc Research, said that the leadership leadership was the long -term hedging nature of assets against inflation amid US President Donald Trump's policies exposed to inflation and threats to definitions.
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“Gold can still keep a long -term route,” he told me. “There may be fluctuations in two directions in the short term, but the bull market remains from mid to mid -range.”
He added that gold prices can continue to rise in the next decade.
He told me that the global demand for banks on gold has grown, and Asian central banks are still in particular, they have a great area to increase their positions compared to their counterparts in the United States and Europeans.
He told me that gold only includes percentage of two or low -numbers of foreign exchange reserves for central banks in the Asia Pacific region, such as Japan and India. Meanwhile, the number in the advanced markets in Europe and the United States can be more than 70 percent.
“Given the global variables of pressure and inflationary pressure, we expect the central banks to continue to buy gold for several years.”
An office was filmed at the International Capital Company in Beijing on October 28, 2020. Photo: VCG via Getty Images Alt = Photographer from the Chinese International Capital Office in Beijing on October 28, 2020. Photo: VCG via Getty Images>
Gold also represents a low correlation with most assets and provided an annual return of about 8 percent over the past twenty years – higher than bonds and goods, according to Li. “Gold is one of the assets with a long -term strategic allocation value,” he said.
As for Chinese stocks, the largest investment bank in the country said that its attractive assessments, the value of diversification and continuous innovation supports a healthy view.
“We have noticed that the companies listed in the Hong Kong menu continued their performance well recently,” said Beng Hu, the main analyst for the technology sector and the Cicc Research. “We believe that the quality of the assets of the current technology companies is improving, partly due to the high-quality local technology companies in the A-Cares market, which has chosen its inclusion in Hong Kong over the past two years.”
Starting artificial intelligence Dibsic Low -cost and highly efficient artificial intelligence tools have provided positive feelings about technological capabilities in China and the start of a combination of technology in Hong Kong.
“The strong industrial chain in China and continuous innovation allows (relevant) to participate in all parts of the world,” Ping said.
CICC estimated that artificial intelligence would increase the total GDP in China by an additional 9.8 percent in 2035 compared to 2024, and translated into another 0.8 percentage points in the annual growth rate.
He added to me that the Chinese stocks were at an attractive price and provided the value of diversification of risks. He said that the relationship between Chinese and American stocks was less than that between us and European stocks.
However, increasing the market in the past few months has been driven primarily with a feeling. “Capture recovery may take time. If the policies or the conversion of the total environment, the stocks may witness short -term fluctuations at the current levels.”
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