By
Steve Muchoki
April 18th, 2024
The CEO suggested that major economies must find means to separate from fossil fuels as Asia can not single-handedly solve the climate crisis.
The CEO of investment company Abrdn, Stephen Bird, has predicted that Indian and Chinese stock markets valuations will advance X4 by 2050. According to the CEO, these stock markets may see an upsurge as Asia transits from “laggard to leader” regarding its climate condition. Bird spoke on these possibilities in a letter seen by CNBC, celebrating the company’s 30th anniversary of its first Asian office opening in Singapore. Also, he commenced the economic improvements, which have saved over 1 billion people from poverty in the last 30 years.
Bird stated that Asia’s portion of the global economy had expanded X8 compared to 1997 during the Asia Financial Crisis. He said:
“Capital markets have also evolved and the region has switched from being mostly a destination for foreign investors to one where local investors dominate its markets.”
He further assured investors to keep calm during volatilities and keep their eye on the game. According to Bird, the coming 30 years will be as exciting as the last three decades.
The CEO said Chinese and Indian stock markets may increase in a few years amid the economic meltdown in China. The strict zero-COVID policy enacted by President Xi Jinping is choking economic activities in the country. It has also resulted in supply chain bottlenecks, and major companies are folding their operations in China. As a matter of fact, the president’s policy has caused a stir across the global markets.
Indian and Chinese Stock Markets Valuation to Expand
Bird’s optimism aligns with bullish comments by Goldman Sachs analysts. The analysts said they could see some light at the end of the tunnel. In his opinion, Asia equities can be top players in the form of performance and role in combating climate change. He predicted that the Chinese stock market would become the world’s largest. Meanwhile, the Indian economy would be the third-largest worldwide. Bird believes that China and India consumers will rule the world’s taste and trends in the next 10 years.
“Other countries in the region present exciting opportunities too. Bangladesh, Indonesia and Vietnam have some of the highest potential growth rates in the world, while Japan and South Korea’s aging populations have built up significant savings that need to put better to work. And, as the region’s most open global financial center, Singapore will be at the heart of all of it.”
The CEO suggested that major economies must find means to separate from fossil fuels as Asia can not single-handedly solve the climate crisis.
“Whether in the form of solar panels, batteries for electric vehicles or green hydrogen, decarbonisation is dependent on Asian innovation,” added he.
Abrdn has also revealed that there is a rise in interest in sustainable instruments among local investors. Also, there is high active engagement between asset managers and companies. As such, there are possible opportunities for new forms of sustainability-bound bonds and loans.