Stanchart chairman still sees opportunities in China as rules tighten

Stanchart chairman still sees opportunities in China as rules tighten

Tourists visit the Bund coast area on May 10, 2021 in Shanghai, China.

Wang Gang | China Visual Group | Getty Images

But overall, I think China remains a tremendous source of opportunities for the private sector.

Jose vinals

President of Standard Chartered

Jose Vinals told CNBC’s Hadley Gamble on Wednesday: “There have been stories in the media – Isn’t China becoming investable? I do not think so.

He added that many sectors could be “a little more difficult now” and investors need to take a closer look at what they are investing in.

“But overall, I think China remains a tremendous source of opportunities for the private sector,” he said, adding that Beijing has gradually opened up its financial sector, giving access to some international companies.

Regulatory crackdown in China has been interpreted differently by big names in the financial world, including Ray Dalio, George Soros and David Roche.

inflation expectations

Separately, Vinals said he didn’t expect inflation to be a major problem.

“I still subscribe to the idea that inflation is an important temporary component of what we see in the United States and especially in other Western countries…” he said.

Fed Chairman Jerome Powell also believes inflation will come down soon and has said he wants to see a more robust jobs report before the central bank starts cutting its bond purchases.

Vinals said many Western countries were operating below their maximum economic potential, adding that the Federal Reserve would likely raise rates early next year.

“My baseline is that inflation won’t be a major problem. But there is a risk that it will become a bigger problem than we thought, ”he said, acknowledging that it would“ complicate matters ”for the world.

“but I see [inflation] as a downside risk to the global economic recovery, as a baseline scenario for the economic outlook, ”he said.

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