Catherine Yeung, Investment Director, Fidelity International, takes a close look at rising inequality, geopolitical tensions, policy responses and other key factors affecting the success of Asia’s economic recovery. Catherine believes that if central banks stop pumping liquidity into the market, that could create a tipping point. There was cyclical recovery in July, underpinned by bank and government policies, but it has stopped to some extent. Looking at geopolitical concerns, Catherine believes that over the short term we will likely see an escalation of negative rhetoric about China. This may cause increased volatility, although the markets have been relatively robust. If you move away from trade discussions, many companies that were previously listed in the U.S. are saying they don’t need to go offshore to list.
Recorded on August 6, 2020.