Schroders: Funds are expected to flow from the US stock market to Asian equities, as broad economic recovery boosts investor confidence.

Gelonghui, March 9｜Alex Tedder, Chief Investment Officer of Equities at Schroders, pointed out that investors are now more willing to invest in Asian stock markets, as the broad economic recovery in the region is boosting investor confidence. He expects that capital may flow from US stocks to Asian stocks, and that non-US stock markets are likely to outperform US stocks, especially the Chinese market. Tedder stated that the business models and AI technology levels of Chinese tech giants are quite close to those in the US. With their potential for expansion in the domestic Chinese and Asian markets, Chinese tech companies are expected to experience rapid growth. He described large-cap Chinese tech stocks as a very interesting sector, noting that their recent performance has been weak and their valuations are underestimated. Regarding Japanese stocks, Tedder said that current valuations are not low, and certain industries such as automobile manufacturing are facing difficulties, raising doubts about whether Japan can recover from these structural changes. Nevertheless, he believes that the Japanese economy is likely to gradually achieve positive transformation and has the potential to surprise the market in the coming years.