Chinese equities have most growth potential

Renminbi2Investors have continued to show their belief in Asian markets as Chinese equities were found to have the most growth potential, with 52% of investors feeling this way, but growth expectations for Asia as a whole remained te same.

The next asset class with most potential, according to investors, was global equities, followed by European equities, gold and commodities.

According to a survey carried out by Schroders, investors had a clear home-country bias. Of those questioned, 44% ranked their own country as the least risky area to invest in followed by Western Europe, 29%, and Asia 21%.

Africa however was ranked the most risk region, with 61% of respondents believing so, followed by the Middle East at 54%.

Schroders found that the current views towards risk and asset classes of the high-net-worth investors surveyed contradicted their future investment intentions in some cases.

So, although 79% of total respondents currently invest in their own country, only 33% ranked it as having the best prospects for growth over the next twelve months.

In particular, 95% and 84% of respondents from the UK and Spain respectively invest domestically at the moment, but only approximately 25% ranked their market as having the best investment prospects over the next 12 months.

Similarly, 38% and 22% of total respondents currently invest in Western Europe and North America respectively, but only 12% and 5% respectively ranked the regions as having the best investment prospects over the next 12 months.

©2011 funds europe