Positive Outlook: China’s Economy Set to Improve in the Second Half

According to the manager of Neuberger Berman’s Chinese fund, China’s economy is poised to experience an upturn in the second half of the year, despite recent indications of weaker economic performance. The manager asserts that the country still has sufficient policy flexibility to provide additional impetus for the ongoing recovery.

Wei Xiaoxue, in an interview with Yicai Global, explains that China has successfully traversed the initial phase of economic recovery and is now undergoing a transitional period. The next crucial step, she highlights, is to enhance internal vitality. In this regard, Wei anticipates that the government will introduce a range of policies encompassing employment, real estate, monetary measures, and finance, among other areas.

While concerns about potential recessions loom over Europe and the United States, China’s recovery is progressing. However, Wei acknowledges that the mismatched cycles between manufacturing countries and demand countries will impede the pace of recovery.

Recent soft economic data has led to a decline in Chinese mainland-listed shares. Wei acknowledges the difficulty in predicting future trends but suggests that certain sectors, including the digital economy, high-end manufacturing, consumption, and well-performing red and blue-chip stocks, notably represented by banks, are likely to experience growth.

Of all the sectors, scientific and technological innovation holds the highest preference for Wei. She underscores the significance of artificial intelligence applications, emphasizing that their development will drive the advancement of upstream hardware and generate cyclical opportunities throughout the entire electronic manufacturing chain.

Wei Xiaoxue assumed the role of deputy general manager and chief investment officer of equity products at Neuberger Berman Fund Management China, the firm’s wholly foreign-owned fund in China, in March. As the manager, she oversaw the launch of their first equity fund product, which occurred yesterday.

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