Overseas investments ‘still have growth potential’

CHINA’S overseas investments still have relatively large growth potential, despite challenges stemming from growing protectionism in some markets, the nation’s top economic planner said Thursday.

The blind optimism of some Chinese companies investing overseas has fuelled misunderstandings in some countries, the National Development and Reform Commission (NDRC) added in a report on China’s offshore investments. It did not elaborate. The regulator supports Chinese firms’ efforts to safeguard overseas investments, but their activities still need to be regulated, the NDRC added.

HK house prices may cool next year: IMF

HOUSE prices in Hong Kong, the world’s most expensive real estate market, could cool next year if the U.S. Federal Reserve delivers the rate hikes it has projected, according to the International Monetary Fund.

The outlook comes as Hong Kong’s property sector shows few signs of a slowdown with price gains of 11 percent this year even after the government pushed through new taxes and mortgage curbs. The Fed could slow that momentum, according to Sonali Jain-Chandra, IMF Mission Chief for Hong Kong.

Funds boost equity exposure to 8-month high

FUND managers in China boosted their suggested equity exposure for the next three months to the highest in eight months, but most will cut exposure heading into the year-end as they anticipate a price correction even as they remain optimistic in the medium term, a monthly poll showed.

The fund managers raised their suggested equity allocations to 79.4 percent from 78.8 percent a month earlier, according to a poll of eight China-based fund managers conducted this week. The fund managers have cut their suggested bond allocations for the coming three months to 5.6 percent from 8.1 percent last month.

Hungary to invest in China’s Europe fund

HUNGARIAN Export-Import Bank will contribute 100 million euros (US$118.63 million) to China’s government-backed SINO-CEE Fund, which aims to raise a total of 10 billion euros, the fund said.

Among the nations of eastern and central Europe, Hungary has attracted the largest amount of Chinese investment. The Hungarian Government’s subscription is “a major step,” as the Chinese fund expects its investment in Hungary to exceed 300 million euros, the fund said in a statement late Wednesday.