Pavel Bandilov, CEO of BPD Industrial Real Estate Fund REIT, “The World Is Business” 23.01.2024
The Chinese economy has indeed been experiencing difficulties in recent years. This is what GDP growth, which at the end of last year, has barely passed 5%, which is extremely low for China’s standards. However, the more decisive indicator is foreign investments, which are currently on a three-year low. This is what Pavel Bandilov, CEO of BPD Industrial Real Estate Fund REIT said in the program “The World Is Business” with host Ivaylo Lakov.
The US stock market has $30-40 billion more capitalization than the entire Chinese stock market, which in itself speaks of the decline in the Chinese economy. The assessment of foreign investors is significant. A direct impact on the economy also has the problems in the real sector, which started with Evergrand and continue to deepen. Regardless of the Chinese government’s attempts to minimize the effects, at this stage there is no result, according to Bandilov.
“The Chinese shares are sold with a premium comparison with their analogues on other markets. Eventually, the potential for growth or recovery of their old peaks is extremely high especially when there is also state intervention.”
“Last year, and most likely this year, we will see again the domination of the big technology companies that only have the resources to invest in technological innovation.”
The investment in “The Magnificent Seven” can safely be the core of any portfolio. Obviously, larger growths are most likely harder to come from a company with such a large capitalization. It is more likely that the big growths will come from the companies that have fallen more than the “Magnificent Seven” in the past year and therefore have the potential to regain more positions, said Bandilov.
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