Citi Private Bank on the Covid epidemic in Asia and Chinese tech stocks –

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Citi Private Bank on the Covid epidemic in Asia and Chinese tech stocks – fr


The further increase in Covid-19 cases in Asia is not of great concern and the region’s economy will get back on track when the outbreak subsides, an investment strategist from Citi Private Bank has said.
In such a context, investors could tackle stocks ‘affected by Covid’ such as airlines and other companies in the travel and leisure sector, said Ken Peng, head of investment strategy in Asia form the bank.

Peng told CNBC’s “Capital Connection” on Tuesday that Asia is not experiencing a resurgence at Covid for the first time.

“It’s a movie we’ve seen before,” he said.

A security guard walks past a mural depicting people of various faiths thanking frontline Covid-19 coronavirus warriors, in Mumbai on January 13, 2021.
Indranil Mukherjee | AFP | Getty Images
“It happened during the winter (which) has just passed and it also happened in the third quarter of last year when we had these waves and then once the cases go down you see the economic recovery. on rails. So, I think it’s not something we need. worries too much, ”he added.
Asian economies from Nepal to Malaysia and Taiwan have reported a record daily increase in Covid infections in recent weeks, according to data compiled by Johns Hopkins University.

In India, which is experiencing the second most severe epidemic in the world, daily cases have remained high, although the trend is down from record levels in early May, the data showed.

Chinese technology, raw materials

In addition to the sectors that have been hit hard by the pandemic, Peng said he sees opportunities to buy declining Chinese tech stocks. He added that the share prices of some of those stocks had fallen following a regulatory review.

The strategist also said he was “very positive” on the commodities space, with demand from China, the United States and Europe likely remaining resilient.

“Those countries that are closer to collective immunity are likely to continue to see demand for raw materials increasing. So I think as the global recovery continues, we shouldn’t worry too much about commodities at the moment, ”Peng said.

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