China's growth to help markets next year: survey

A majority of global investment professionals have strong confidence that China's stable economic progress in 2014 will be a positive force for global growth, an international survey showed on Monday.

According to the 2014 Global Market Sentiment Survey conducted by the CFA Institute, an international association of investment professionals, 71 percent of the 6,561 respondents around the world believe that the sound development of China's economy next year will benefit their own economy's growth.

The equity market on the Chinese mainland was voted as the second most attractive region in terms of investment opportunities for global financial professionals in 2014, after the United States, the survey showed.

David Xie, president of the CFA Society in Beijing, said that positive expectations for China's macroeconomic situation and the "clarified" reform policy stance from the top leaders have strengthened overseas investors' confidence.

"China's new normal growth pace and the policy that focuses more on long-term and balanced development are more acceptable among global investors, although the year-on-year GDP increase rate may moderate in the short run," he said.

During the transformation of the nation's growth pattern, service- and consumption-related sectors, especially the financial and Internet industries, will benefit from the reforms, according to Xie.

A statement released last week after the Central Economic Work Conference suggested an emphasis on the stability of economic growth and macroeconomic policy. It said that the government will maintain reasonable growth as well as improve the quality of development, which didn't provide any surprise to external investors.

Nomura Holdings Inc said in a research note that there will be no change in the overall policy stance in 2014, which will help keep market expectations stable.

In the CFA Institute survey, 63 percent of all investment professional respondents said they expected the global economy to recover further in 2014, compared with 40 percent in 2013.

About 48 percent of the Chinese respondents anticipated a brighter global economic environment next year, which will support domestic growth. The figure was only 21 percent last year.

An increased focus on resolving or easing global sovereign debt challenges and a rebound for growth in emerging economies will be the top two positive factors for global capital markets in 2014, the survey found.

Also, 28 percent of the global respondents said that employment opportunities for investment professionals in their local market will increase next year, the highest proportion in three years, up from 17 percent in 2012 and 14 percent in 2011.

John Rogers, president and chief executive officer of the CFA Institute, said that the survey reflects the erosion of investor trust since the global financial crisis.

"Investment professionals must embrace ethical behavior at all levels," Rogers said. "As markets rebound, we are working to ensure that attention does not shift away from meaningful reforms that might restore investor trust and strengthen the financial system's ability to resist shocks in the future."