German Firm Sees Opportunity in Volatile Chinese Solar Stocks
Chinese stocks have been volatile recently, but the solar sector has shown resilience. Gies & Heimburger, a German investment firm, sees this as an opportunity for long-term investors.
The firm is using the weakness in Chinese growth stocks to increase its positions. It views its China investments as long-term and has selectively added to them recently. The risks of state interventions are factored into their decisions. Despite the Evergrande crisis, which was caused by state regulation restricting credit leverage, the firm remains optimistic about the long-term prospects of the Chinese economy. Efficient capital markets are crucial for China's medium- and long-term goals. The firm's portfolio manager, Hans Heimburger, believes that the current weakness in Chinese stocks is an opportunity for long-term investors. While a disorderly Evergrande default could cause short-term market turbulence, the solar sector is holding up well and is unlikely to be targeted by regulatory measures. China aims to significantly expand the share of renewable energies, which bodes well for the solar sector.
Gies & Heimburger is taking advantage of the current situation in the Chinese stock market, particularly in the solar sector. The firm views its China positions as long-term investments and is prepared for potential short-term market turbulence. It remains confident in the long-term prospects of the Chinese economy and the solar sector, given China's commitment to renewable energy expansion.
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