Despite near-term obstacles, Asia offers some very good and unique long-term investment opportunities that should not be ignored, argues HSBC. Herald van der Linde and Devendra Joshi of HSBC note in their July 29 research report titled: “The Flying Dutchman” that China’s continued reliance on debt and slower reform momentum continue to cloud equity markets.
Asia faces near-term obstacles
Linde and his colleague point out that there are quite a few factors hindering the near-term performance of equities across Asia. Some obstacles include: the gyrations in Chinese equities, the upcoming Fed rate hike, falling commodity prices, recent USD strength, and slowing reform momentum in some countries.
However, the HSBC analysts believe some of these factors have become less of a threat in...
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