Allianz Global Investors Japan Co., Ltd.
Allianz Global Investors U.S. LLC
Allianz Global Investors GmbH
Allianz Global Investors Asia Pacific Ltd.
Allianz Global Investors Singapore Ltd.
Allianz Capital Partners GmbH
Coronavirus: stay alert for further market volatility
We expect this outbreak to hurt China’s economy in the short term, but we are still positive about the country’s long-term prospects. Throughout Asia, supply-chain troubles will likely have a broadly negative effect. But we don’t expect the global economy to be hit as hard as China’s: central-bank policies, corporate earnings and stabilizing economic fundamentals still seem supportive of global risk assets.
While the recent drag on China’s economic growth has been mostly caused by the government’s efforts to contain the Wuhan coronavirus, those are necessary steps to get the situation under control
China’s central bank has already taken steps to bolster its economy, and we expect further stimulus measures to be announced
Long term, we think investors should still be optimistic about China’s potential, although we expect China’s insurance sector, airports and leisure industry to suffer in the coming months
Comparisons between this new coronavirus and the SARS epidemic of 2002-2003 may be unhelpful because the world – and China’s role in it – are very different now
We expect this virus to affect the global economy less than China’s – but supply-chain problems will likely put pressure on economic fundamentals, which are fragile but have been improving