By David Bailin
Chief Investment Officer
Our website no longer supports your current web browser version, which means you are no longer able to access this website. Please update your browser to continue.
China’s recovery from the pandemic will show the West the way forward. Investors need to reflect this in their portfolios
• The difference in the “cost of COVID” between the West and East is dramatic and visible. A surge in US deficit spending -- from 5% of GDP to 15% in 2020 -- has been required to achieve economic stability thus far. China has not needed to provide as much fiscal and credit support given its handling of COVID.
• In 2020, China’s shutdown, reopening and economic results provide useful “ forward guidance” on patterns for later recoveries in Western economies. For example, Hong Kong and Singapore have resumed flights in a “safety bubble.” This illustrates a positive future path for beaten-down services industries across the world by mid- to late 2021.
• China will derive certain advantages from its handling of the pandemic. That said, China has its own set of headwinds. We think that exposure to Asian growth and equities is an essential part of a forward-thinking portfolio. Structural changes in how the East and West compete will make the development and deployment of that portfolio complex, but beneficial or investors.Read the CIO Strategy Bulletin
If you are a Citi Private Bank client you can check the value of your portfolio by reviewing your monthly statements or, if you use Citi Private Bank InView, by navigating to the Account Overview page via Portfolio → Overview. If you have any queries please contact your usual Citi Private Bank representative.