JP Morgan says China is not un-investable


content provided with permission by FXStreetRead full post at forexlive.com

John Bilton, head of global multi-asset strategy at JPMorgan Asset Management spoke with CNBC.

He said not dismiss China as an investment:

“I don’t think you can treat the world’s second-largest economy as either an alternative investment or un-investable, that would be wide of the mark”

But he does have concerns:

  • pressures from deflation
  • lacklustre economic data
  • economic slowdown
  • struggling property market
  • uncertainty around monetary policy
  • a shrinking labor force

On that last point:

  • China’s declining population means the labor force is also shrinking – and labor force is the biggest factor when it comes to economic growth
  • This means the other drivers of economic growth are being asked to do “a lot of heavy lifting”