London Daily

Focus on the big picture.
Saturday, Aug 22, 2026

Citibank prefers Chinese stocks, JPMorgan sees safer bets in bonds, real estate amid political risks in 2020

Citibank prefers Chinese stocks, JPMorgan sees safer bets in bonds, real estate amid political risks in 2020

Citibank likes Chinese internet and banking stocks, 5G smartphone makers amid protests, US-China trade war. Bonds, real estate may be safer bets for stable income as trade war, Brexit and US elections make 2020 a tougher year to navigate: JPMorgan Asset Management

Chinese internet stocks and smartphone makers are likely to be among a few winners in 2020, providing shelter to investors amid lingering political risks in Asia, US and Europe, according to Citibank. Bonds and real estate are seen as better bets by JPMorgan Asset Management.

Despite an impending agreement to the “first phase deal” in the trade war, global political uncertainty and anti-government protests are likely to continue weighing on investor sentiment for much of 2020, said Wong Pak-ling, head of investment strategy and portfolio advisory at Citibank Hong Kong.

“A great deal of political risk remains in the markets,” Wong said in a briefing when sharing its outlook for the market on Thursday. “Investors should be aware that the US-China trade dispute will be a long-term issue and will not be resolved in the short term. It will become a new normal.”

For Hong Kong, 2020 has started like the end 2019 as anti-government protesters clashed with police over their political demands. HSBC Holdings has become the latest target, following after popular groups alleged to have links to mainland political interests.

Under this backdrop, Citibank believes Chinese internet stocks will perform well, boosted by the consumption upgrade among mainland consumers who are seen driving the domestic growth engine as exports falter.

The advent of fifth generation or 5G technology, Wong said, is expected to spur mobile-phone makers by pumping up sales of smartphones in the world’s largest consumer market.

His other pick is mainland banking stocks, which are expected to play a greater role in funding the local economy. China’s economy grew in the third quarter last year at the slowest pace since 1992. China’s economic growth is forecast to slow further to 5.8 per cent this year, and 5.6 per cent in 2021, Citibank said.

The US-China trade war, which has lasted for more than 18 months, has fuelled a roller-coaster ride for Hong Kong investors in 2019. The year, which started with a bang in the first quarter, soon petered out as protests took a violent turn and pushed the economy into a technical recession in the third quarter. Retail sales, tourism and hotel occupancy have posted steep losses last year.

Citibank’s positive view on some Chinese stocks follows measures announced by policymakers in the new year to underpin economic growth in 2020.

China’s central bank announced a move to unleash 800 billion yuan (US$115 billion) from the banking system to support the economy, sending a pro-growth message on the first day of 2020. The People’s Bank of China will reduce the deposit reserve ratio from January 6 to support the economy.

JPMorgan Asset Management believes the US election and Brexit will also create uncertainty, making political issues “front and centre for investors,” according to Hannah Anderson, global market strategist.

“Not only does the upcoming US election mean investors will be inundated with political headlines but we also have a full year of the Brexit process to watch for twists and turns in, and the US-China trade war is far from resolved.”

In the meantime, investors are likely to look for stable income from other sources, “like real estate or high quality corporate credit,” Anderson said.

Newsletter

Related Articles

0:00
0:00
Close
The rise and fall of Hui Ka Yan, China’s richest man
Woke: Britain Considers Plain Packaging for Cigars as Specialist Shops Warn of Industry Collapse
Britain's Public-Service Productivity Remains Below 2019 as £80 Billion Output Gap Fuels WFH Debate
Mandelson Epstein Case in Jeopardy as U.S. Files Stay Out of Reach
Prince Harry and Six Others Ordered to Pay £9.5 Million After High Court Defeat
Petrol Bombs Set Luxury Cars Alight Outside Birmingham Wedding as Police Hunt Three Men
Bitcoin Surges Toward $80,000 as Short Squeeze and ETF Inflows Ignite Crypto Rally
Prince Harry and Co-Claimants Ordered to Pay £9.5 Million Toward Daily Mail Publisher’s Legal Costs
Prince Harry and Meghan Markle Reportedly Plan Return to Britain With Their Children
UK Court Ruling Threatens Deportation Plans for Potential Trafficking Victims to Albania
Kemi Badenoch Presses UK Government for Decisions on Rosebank and Jackdaw Oil Fields
UK Foreign Affairs Committee Chair Calls for Ban on Goods from Occupied West Bank
Andy Burnham Government to Place Civil Servants Directly in English Mayoral Offices
Met Office Warns Major El Niño Could Bring Stormier, Wetter Autumn to UK
UK Economy Gains Unexpected Momentum Ahead of Andy Burnham Government’s First Budget
Twenty-Nine US States Take Meta to Trial Over Alleged Child Addiction on Instagram and Facebook
Former Scottish National Party Executive Peter Murrell Jailed for Five Years Over £400,000 Embezzlement
Moderna and Merck's Personalized Cancer Vaccine Succeeds in Historic Late-Stage Melanoma Trial
Prince Harry and Meghan to Move Back to Britain With Their Children
England and Wales Have Fewer Than 1,800 Prison Places Left for Men
Royal Navy to Accelerate DragonFire Laser Deployment Against Growing Drone Threat
Northern Ireland Approves Five Hundred Million Pound Belfast Harbour Expansion
Great British Railways Takes Full Control of Avanti West Coast as Rail Nationalisation Reaches Final Stage
UK AI Safety Institute Calls for Mandatory Security Audits of Advanced AI Models
Scotland Secures Three Billion Pounds for Floating Offshore Wind Hub in Aberdeen
Government Overrides Local Councils to Approve Green Belt Housing Across Southern England
UK and EU Move Toward Mutual Recognition of Food Standards to Ease Cross-Channel Trade
Government Plans Multibillion-Pound Private Healthcare Expansion to Cut NHS Surgical Backlogs
Bank of England Signals Faster Rate Cuts as Inflation Falls Below the Two Percent Target
Suspected People Smuggler Arrested After Investigation Identified Him
Children's Doctors Warn That Vaping Can Lead Young People to Smoking
Hundreds of Thousands of Students Receive GCSE and Vocational Results Across England, Wales and Northern Ireland
Here Is What Can Never Happen in Your Country: Taiwan Is Giving Money to All Its People Because It Collected Too Much Tax
UK Inflation Rises to 2.9% as Energy Bills Jump
UK Issues New Conduct Guide for Asylum Seekers on Consent and Respect
Moderna Shares Surge After Positive Personalized Skin Cancer Trial Results
UK Markets Watch US National Debt Surpass Forty Trillion Dollars
UK Broadcasters Urge Government to Invest in Digital Participation and Broadband
CVC Capital Partners and Standard Life Launch Two Billion Pound Pension Risk Transfer Venture
UK Private Sector Productivity Growth Accelerates in Second Quarter
UK Foreign Secretary Ed Miliband Condemns Israeli E1 Settlement Tender
UK Watchdog Investigates Trainline, Virgin Atlantic and RED Driving School Over Hidden Fees
Prince Harry and Meghan Markle Plan Move to Private Home Outside London
UK Retail Sentiment Improves as Summer Spending Boosts Consumer Confidence
UK Aid Cuts Draw Warnings From Charities Over Humanitarian Consequences
UK Financial Conduct Authority Issues Guidance for Motor Finance Redress Scheme
UK Met Office Launches Aviation Programme to Reduce Climate Impact of Persistent Contrails
Former UK Civil Service Chief Received Record 500,000 Pound Severance Payment
West Midlands to Bring Bus Network Under Public Franchising Model
UK Government Drops Plan to Relax Affordable Housing Requirements After Backlash
×