Mark Konyn holds positive outlook on China, says CIO


Aug 4 - Financial company Mark Konyn holds a positive outlook on China, driven by its long-term structural growth and commitment to open up financial markets to foreign investors despite its recent regulatory changes, group CIO AIA said.

International investor sensitivity to policy risk has certainly heightened, Konyn told the Reuters Global Markets Forum on Wednesday.

He viewed this transformation as a long-term phase with transitional sentiment intact on the liberalisation of China's financial system.

The bottom line is markets are rebalancing risk premiums on Chinese risk assets we continue to hold a positive outlook on China, he added.

Chinese stocks and sentiment took a drubbing with Communist Party rulers seeking to remake the property, technology and education sectors to curb cost pressures and better serve ordinary people.

Konyn said the sell-off in Chinese equities has provided opportunities to invest in the country, such as in finance services and sectors catering to direct consumption, in line with the themes of urbanisation and a broadening middle class.

He forecast the dollar index to end 2021 near the 96 % level and the 10-year Treasury yield at around 1.6%.

The dollar index has increased to -92.251 averages in the year-to-date and the U.S. 10-year Treasury yield on 11920% from 0.9182% on Jan. 1 '' has improved from 0.95826%.