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.
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