Ken Wong, Eastspring Investments
Client portfolio manager, equities
Lockdowns generally do not provide a lot of benefits for the greater economy. Looking at China, however, e-commerce related companies like online vendors and online gaming proved to be resilient during the COVID-19 outbreak.
Online meeting platforms and online educational related companies have also seen strong gains in their share prices.
Given that stocks are now trading well below their intrinsic value, there are plenty of good stock picking opportunities in various sectors.
The market volatility and high correlations between Asian equity and fixed income markets should benefit medium- to long-term investors. They have a more diverse exposure to lower correlated sectors, such as Asian real estate assets.
This would help investors weather the capital market’s daily volatility, while maintaining a long-term holding in one of the more exciting long-term growth prospects in Asia.