Business
Fidelity International Records Surging Fund Sales Amid Interest Rate Cuts and China Market Rally: A Glimpse into the Strategy with Hong Kong Chief, Charlotte Chan
Fidelity International reports a boom in fund sales due to cuts in interest rates and the upswing in the Chinese market. Charlotte Chan, who is based in Hong Kong, states that the sales of retail funds in Hong Kong have seen a twofold increase compared to the previous year.
A significant executive from Fidelity International stated that the surge in China stocks and reduced interest rates have contributed to the increased sales of their investment fund products.
"After the stimulus package from the People's Bank of China was introduced, the Chinese stock markets have been showing considerable growth, and we think there's still some potential for further growth," stated Charlotte Chan, the leader of Fidelity's office in Hong Kong, during a discussion. "Along with the Federal Reserve's interest rate reductions, this encourages investors to reconsider their investments, particularly those who have been holding back their cash."
Chan reported that in the initial three quarters of 2024, Fidelity experienced a two-fold increase in their retail fund sales in Hong Kong compared to the same period the previous year.
"In the initial half of this year, a lot of investors anticipated a decrease in interest rates, which led to them taking more risks with their investments," she expressed.
"Numerous individuals have transitioned from holding cash to investing in long-term bonds, aiming to benefit from a potential reduction in interest rates. Additionally, some have also begun to show interest in stock funds."
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