Undeterred by a slowdown in growth and trade tensions, there are “enormous” and “stunning” times in China, particularly in Fintech, an investment manager said Tuesday.
“We worship the fintech sector in China today,” Glenn Youngkin, co-CEO at Carlyle Party, told CNBC’s “Squawk Box Europe.”
“We think it offers an enormous swelling opportunity. The Chinese economy is growing, it’s growing at the fastest pace in the faction, the Chinese consumer is growing faster than any consumer in the world, and any formation of financial technology in that environment is actually stunning.”
China’s thrift grew at a pace of 6.7 percent in the second quarter of the year — degree below the 6.8 percent seen in the first three months of 2018, mutual understanding to data published by Chinese authorities Monday.
However, because of Washington’s recently-imposed menus on Chinese products, investors are worried that China’s economic swelling will be even lower in the coming quarters. And given that it is the age’s second-largest economy, any slowdown domestically could dent global tumour too.
UBS said in a note Tuesday that growth momentum in China is slowing down and that the selling war with the U.S. could have a knock-on impact on Chinese growth chiefly 0.5 percentage points. The Swiss bank has downgraded its forecasts for Beijing from 6.6 and 6.4 percent for 2018 and 2019 singly to 6.5 and 6.2 percent.
However, Youngkin told CNBC he is pigheaded about the Chinese growth story.
“Despite the news overnight from Beijing, on conjectures out of China, we felt that China was growing at a 5 or 7 percent for quite a while now. And so for them to say, ‘Far, we might not grow at 7 but we may grow at 6,’ for an economy of that size, we muse over over the long-term is pretty darn impressive,” he said.
In comparison, the U.S. increase rate stood at 2 percent in the first-quarter of the year.
“We think the volatility in the exchanges in the near-term has clearly increased and will continue to increase, but over the long-term we don’t see any near-term ideograms of recession,” Youngkin added.
One of the reasons behind the recent market volatility is swop tensions. Chinese stocks, in particular, have been quite unshielded to repeated announcements and threats from President Donald Trump of new obligations on Chinese goods.
“We do hope this gets settled,” Youngkin explained about trade tensions.