London, 21 February 2008 - New figures releases today by global information providers TNS cast a shadow over the perceived impact of China’s stock market bubble on the European economy.
The TNS Financial Experts study registered a significant concern amongst UK-based asset managers regarding the Chinese bubble phenomenon – with 48% admitting concern for its potential impact on the UK industry.
Concern may stem from the fact that the UK market overwhelmingly sees recent growth of the Chinese market as purely speculative – with 80% of respondents admitting this. In Europe, this rises to 93% in France and 88% in Germany.
Sharon Rees, Head of TNS Finance, says: “While asset managers in the UK are less concerned than their colleagues in the US (62%) and France (61%), the overall outcome of the study highlights the growing global influence of the Chinese stock market. Although the market is in a potentially over-inflated position, which will need to be corrected, it could have a strong impact on the UK.”
Key highlights of the study include:
- 79% of asset managers across Europe and the US have an interest in the Chinese market – falling to 65% in the UK
- More UK asset managers than interviewees in any other European country are currently buying and selling Chinese stocks, with 24% of interviewees trading Chinese shares compared to a cross-country average of 17%
- Nearly half of industry professionals in all markets closely monitor developments within China’s economy and 31% closely monitor Chinese equity market developments.
- 78% of asset managers see growth in China mainly led by private local investors.
- Following a period of significant growth, asset managers in general anticipate a ‘smooth landing’ for the Chinese equity market in 2008. UK asset managers are generally more pessimistic but highly divided in their predictions - 28% expect a significant correction of the Chinese equity market, 24% think it will consolidate, and only 17% forecast ongoing growth in China.
Survey conducted via phone interviews for TNS Finance Global Sector, 26th to the 29th of November 2007
182 asset managers questioned, working for leading asset management firms in Europe and the US (32 interviews in France, 20 in Spain/Italy, 25 in Germany, 20 in Switzerland, 25 in Benelux, 30 in the UK, 30 in the USA)
Sample from TNS Sofres financial experts database TNS Experfi - a huge financial experts database set up in 1993, including 22 000 names of specialists (mainly asset managers and financial analysts)
TNS is a global market insight and information group.
Our strategic goal is to be recognised as the global leader in delivering value-added information and insights that help our clients to make more effective decisions.
As industry thought leaders, our people deliver innovative thinking and excellent service to global organisations and local clients worldwide. We work in partnership with our clients, meeting their needs for high-quality information, analysis and foresight across our network of more than 70 countries.
We are the world’s foremost provider of custom research and analysis, combining in-depth industry sector understanding with world-class expertise in the areas of Retail & Shopper Insights, Stakeholder Management, New Product Development, and Brand and Communications. We are a major supplier of consumer panel, media intelligence and Internet, TV and radio audience measurement services.
TNS is the sixth sense of business.