Resurgent China Sets Sights on Global Financial Markets Powerhouse Status post-Covid

China’s successful early handling of the coronavirus pandemic through strict lockdowns has meant it was the only major economy to grow and not shrink in 2020, expanding its share of the world economy at triple the rate of 2019. The resurgence in economic growth has emboldened the Chinese government to drive forward in throwing open its domestic financial sector to create an irresistible magnet for international investors and establish China as an investment destination to match its status as a world trade powerhouse, while posing a challenge to the U.S. dominance of global capital markets and a dilemma for Europe, speakers at a recent online media roundtable hosted in Amsterdam concluded.

“China-U.S. rivalry will come to dominate financial markets as it does now global trade and European governments and investors will be pushed to resist American efforts to decouple from China, because a strong global economic recovery from Covid-19 requires strong economic cooperation with the Chinese. European institutional investors realise that Chinese markets will continue to offer them very important and increasingly growing opportunities and this will place them between a rock and hard place of the geopolitics of American pressure and the economics of Chinese growth,” Ties Dams, research fellow at the Netherlands Institute of International Relations ‘Clingendael,’ told journalists.

Dams is the co-author of the Clingendael research report: Fire and Haze – Sino-U.S. rivalry, the Covid-19 crisis and financial markets. The Clingendael Institute is a co-founder, along with AXA Investment Managers, of The China Platform for European Institutional Investors, which facilitated the media roundtable and has a particular focus on geopolitics and the dynamic field of Chinese ‘green financing’ and its role  in international efforts to address Global Climate Change.

Read full article

Photo credit: Manon Geuskens, Bellier

Not for Retail distribution: This document is intended exclusively for Professional, Institutional, Qualified or Wholesale Clients / Investors only, as defined by applicable local laws and regulation. Circulation must be restricted accordingly.

This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MiFID Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities.

It has been established on the basis of data, projections, forecasts, anticipations and hypothesis which are subjective. Its analysis and conclusions are the expression of an opinion, based on available data at a specific date.

All information in this document is established on data made public by official providers of economic and market statistics. AXA Investment Managers disclaims any and all liability relating to a decision based on or for reliance on this document. All exhibits included in this document, unless stated otherwise, are as of the publication date of this document.

Furthermore, due to the subjective nature of these opinions and analysis, these data, projections, forecasts, anticipations, hypothesis, etc. are not necessary used or followed by AXA IM’s portfolio management teams or its affiliates, who may act based on their own opinions. Any reproduction of this information, in whole or in part is, unless otherwise authorised by AXA IM, prohibited.

In the Netherlands, this document is intended for Professional Clients only, as defined by local laws and the MIFID directive, and is distributed by AXA IM Benelux- Netherlands  Branch, Beethoven 500 – 4th Floor, Beethovenstraat 518 – 1082 PR Amsterdam - the Netherlands.