think it is a really important factor for small, medium and large
investors to be paying closer attention to," Mark Howard, Senior
Multi-Asset Specialist at BNP Paribas, told CNN international correspondent Paula Newton on Wednesday.
trade war between the United States and China is already hurting
Chinese stocks. The benchmark Shanghai Composite Index is down 17.6%
this year. And the International Monetary Fund cut its growth forecast for China this week, saying that tariffs will hurt the country's economy next year.
Howard said slower growth will hit investors with stakes in Chinese companies in the short term.
But he added that China still has "plenty of tools to engineer a recovery." And when that happens, those investors could win.
China has been pumping more cash
into its flagging economy to spark growth and mitigate effects from the
trade war. Chinese officials have also turned to tax cuts,
infrastructure spending and looser monetary policy in an effort to spur
more economic activity.
Experts warn that may not be enough.
matter what, investors need to keep their eyes open as more Chinese
debt equity and debt securities are added to the global stock market,
Howard also warned against complacency in US markets.
have to be "more vigilant" and "discerning," when putting together
their portfolios, he said. Pockets of volatility mean investors "can't
just ride winners because they won."
source: CNN Business