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Winter 2020-21 China Newsletter Issue No 48

Two-way fund flows set to be encouraged

Is Your Low Volatility Strategy Good Enough? Test It Overseas

Is Your Low Volatility Strategy Good Enough? Test It Overseas February 12, 2021 A low volatility strategy can help investors avoid market queasiness. According to a recent Forbes article, one great way to test such a strategy is to see how it fares overseas. “One robust way to test out factors is to see if they hold up across geographies,” the Forbes article said. “Researchers have found that low volatility does appear to work in China for the A Shares Market, though in a slightly different manner to the U.S. market. This is also relatively recent research looking at the 2000-2018 period, so may be less prone to the issue that historical performance can decline once the factor is well understood. This research is titled ‘The Volatility Effect in China’ and produced by researchers at Robeco Investments.”

Guo Shuqing: China s New Development Stage and Hong Kong SAR s New Opportunities

Guo Shuqing: China s New Development Stage and Hong Kong SAR s New Opportunities Speech by Mr Guo Shuqing, Party Secretary and Deputy Governor of the People s Bank of China, at the 14th Asian Financial Forum, 18 January 2021. Central bank speech  |  It s a great honor to speak at the Asian Financial Forum. Today s world is witnessing historic changes. Asia may play a prominent role in the development of the world s civilization as it once did a few centuries ago. And recently China has set out clear development objectives. By 2035, it will achieve socialist modernization. By 2050, it will develop into a modern socialist country that is strong, prosperous, democratic, culturally advanced, harmonious and beautiful.

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