UBS: China is the most attractive emerging market even despite of Trump tariffs

Katherine Tsai, who heads the UBS investment fund Greater China, made her statement on CNBC during the World Economic Forum, which is now taking place in Tianjin, China. Despite the fact that Chinese indices have lost about 20% since the beginning of the year because of fears of investors in connection with the US tariff policy. The market reaction was exaggerated, the representative of UBS believes. In her opinion, the growth potential of the Chinese economy and Chinese business, even despite the expansion of US trade sanctions, remains significant. "We still believe that China is the most attractive of all emerging markets," Mrs. Tsai underlined. She noted that "the Chinese government has already taken a number of early measures, such as weakening monetary policy. And the Central Bank can further soften the conditions for obtaining loans. All these opportunities allow stimulating domestic consumption in China."

UBS is not the first major Western bank, which believes that the US tariff policy will not cause a tangible damage to the Chinese economy. In late August, chief economist Morgan Stanley in China Robin Xing said: "We do not expect a noticeable correction in growth. The potential impact of trade tariffs will be partly offset by government measures to mitigate the policy." However, according to forecasts of the same Morgan Stanley, China's GDP growth will slow to 6.4% in the first half of this year, while the economy of this country grew by 6.9% in the last year.

source: cnbc.com