How will inflation in the US affect investments in China
Gian Plebani, PM for UBS China Allocation Opportunity (multi-asset China strategy) portfolio says China’s business cycle is independent of the US and will not be as impacted by US inflation.
China’s business cycle is independent from the US as it’s driven by credit creation locally. So when the US moves into a cyclical uptick, the same may not happen in China.
As the China and US economies are quite independent, he will look into the China market itself to see if there is an inflation scare or not.
Gian also stressed that he does not expect an inflation risk in the near-term as central banks are working against that with quantitative easing programs and interest-rate cuts.
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