The threat of China invading Taiwan, long considered a highly improbable event, has moved to the center of global money managers' risk radars and is factoring in their investment decisions, analysts say
Taiwan's president, Tsai Ing-wen, has repeatedly pledged to uphold peace and avoid provocation. She has offered talks with China, but has also said Taiwan will defend itself if attacked.
He says many clients have asked how to think about it, and it is a risk his firm has been monitoring. Spreads on Taiwanese 5-year credit default swaps have held at 176 basis points since last March, nearly 30 bp higher from where they were at the start of last year. "If we want to maintain peace across the Taiwan Strait, we must resolutely oppose Taiwan independence, and we must resolutely maintain the one-China policy," he said at the Munich Security Conference on Feb. 18."Realistically, if there is ultimately a conflict between China and Taiwan, I think the ramifications are going to be far more severe than necessarily worrying about which company you should be holding in the markets," Malcolm said.
"If things stay stagnant, or escalate, what we're going to pivot to is the more industrial and capex cycle on the reshoring trade ... instead of owning global industrial companies that have exposure to China or elsewhere," he said. "I'm going to go smaller, more domestic names, that would play into that capex cycle."
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
CIA Chief Says China Has Doubts About Its Ability to Invade TaiwanRussia’s struggles to seize and keep territory in Ukraine over the past year has likely fueled doubts in Beijing that China’s military could successfully invade Taiwan later this decade, Central Intelligence Agency Director William Burns said on Sunday
Read more »
Analysis: CATL's 'price war' shows its power, and China's EV edgeCATL , the world's largest battery maker, has offered to cut costs for Chinese automakers, a move that demonstrates its market power and could also widen China's cost advantage in electric vehicles.
Read more »
CIA director Bill Burns: China has doubts whether it could accomplish invasion of TaiwanChinese President Xi Jinping and his military leaders likely have some doubts as to whether China could accomplish a successful invasion of Taiwan after witnessing the trajectory of Russia's war in Ukraine, CIA Director Bill Burns told CBS.
Read more »
CIA chief: China has some doubt on ability to invade TaiwanThe CIA director says U.S. intelligence shows that China’s President Xi Jinping has instructed his country’s military to “be ready by 2027” to invade Taiwan.
Read more »
CIA chief: China has some doubt on ability to invade Taiwan“We do know, as has been made public, that President Xi has instructed the PLA, the Chinese military leadership, to be ready by 2027 to invade Taiwan,' CIA Director Williams Burns said.
Read more »
CIA chief: China has some doubt on ability to invade TaiwanU.S. intelligence shows that China’s President Xi Jinping has instructed his country’s military to “be ready by 2027” to invade Taiwan though he may be currently harboring doubts about his ability to do so given Russia’s experience in its war with Ukraine, CIA Director William Burns said.
Read more »