BNP Paribas Asset Management released its mid-term investment outlook. Chen Zhikai, Head of Asian and Global Emerging Market Equities at BNP Paribas Asset Management, stated that they are now holding an overall Overweight view on the China and Hong Kong stock markets, with a more favorable outlook on Hong Kong stocks. He expected that the trading volume of Hong Kong stocks will remarkably improve this year from last. He also noted that certain niche stocks and sectors are gaining popularity, reflecting ample market liquidity.

Mark Richards, Head of Dynamic Multi-Asset at BNP Paribas Asset Management, anticipated that the Federal Reserve's response to the economic slowdown may be slower in wake of the uncertainties in inflation and fiscal policy, describing the Fed as potentially being too late to be dovish. The market currently expects four rate cuts totaling 100 bps over the next 12 months, which he considered a reasonable forecast.

Related NewsOvernight Shibor Rises 0.3 bps to 1.370%
In terms of asset allocation, Richards suggested focusing on utilities, Chinese techs, miners, semiconductors, nuclear energy, and defensive stocks, and recommended deploying strategic metals like gold and copper. The asset manager also highlighted the Indian market, viewing it as one of the few major Asian markets that can still benefit from a demographic dividend. Moreover, they are focusing on Chinese, South Korean, and Taiwanese tech companies riding on elevated corporate AI investment budgets.