China Perspectives Fitch Ratings

Charles Zhang, Director of Fitch’s China industrial corporates team, shares his insights on the risks and opportunities for Chinese construction companies amid the country’s economic slowdown, including structural challenges and transition plans.

(00:00) - Introduction
(01:05) - Credit outlook on China’s construction sector
(06:21) - Growth opportunities from infrastructure projects
(09:39) - Construction companies’ transition strategy
(13:00) - Long-term structural challenges
(18:34) - Overseas opportunities
(23:35) - Closing

Jing Yang, Director of Fitch’s China Research Initiatives based in Shanghai, shares insight on China’s booming electric vehicles industry and Chinese automakers’ overseas diversification trends.  

(00:00) - Introduction
(01:18) - Growth drivers of China’s EV Market
(05:45) - EV price wars
(07:59) - Chinese EV brands’ competitive edge
(09:53) - Can foreign and JV brands catch up?
(11:02) - Evolving competitive landscape
(14:00) - China’s EV exports
(16:10) - Risks of Chinese automakers’ overseas strategy

James MacDonald, Senior Director and Head of China Research at Savills based in Shanghai, shares first-hand experience and observations on the country’s residential, commercial, and industrial real estate markets. Through his professional lens as an 18-year industry veteran, James discusses the key structural changes in China’s real estate market and the broader economy. 

(00:00) - Introduction
(02:00) - China’s residential market condition
(03:27) - Policy direction and stimuluses
(07:15) - China’s commercial property market condition
(10:42) - Oversupply risk in commercial property
(14:00) - Investment trends in the office market
(16:22) - Multinational companies’ China strategy shift
(20:36) - China’s consumer market outlook
(23:01) - “New Economy” real estate assets
(25:48) - Growth potential for C-REITs
(30:20) - Closing Remarks

Alvin Cheng, Head of Fixed Income, Portfolio Manager at Fidelity International’s China WOFE, shares his views on China’s economic prospects in 2023 as well as risks and opportunities in the world’s second largest bond market. 

(00:00) - Introduction
(01:38) - China’s macroeconomic outlook and key investment themes in 2023
(04:05) - Potential risks to China’s recovery
(06:09) - Deflation and inflation risks
(09:25) - China’s bond market opportunities for foreign asset managers
(14:55) - Challenges for increasing credit exposure
(19:18) - Improvement in credit risk pricing
(21:49) - Market inefficiencies and structural challenges
(23:34) - Fidelity’s approach to investing in LGFVs
(27:48) - Corporate credit risk in 2023
(29:55) - Closing remarks

Jenny Huang, Deputy Head of China Research Initiatives at Fitch Ratings, shares her views on China’s consumption recovery prospects, including stimulus for growth, constraints, consumer behaviour changes, and implications for related companies.

(00:00) - Introduction
(01:15) - China’s consumption recovery prospects
(06:45) - Wage inflation risk
(08:34) - Sub-segments’ performance
(14:11) - Changing consumer behaviour
(16:52) - E-tailing sector’s competitive landscape
(20:35) - Consumption-led import demand

Gene Ma, Head of China Research at the Institute of International Finance, shares his views on China’s 2023 macro outlook, including prospects for growth, consumption, inflation, and the top priorities for economic policymakers this year.