2016 was a volatile year that started with large capital outflows, a stimulus, an inflating property bubble and wrapped up with a surprise Brexit vote and a Trump victory. CLSA predicts 2017 will face similar issues, but with the added drag from a slowing property market and risk of US protectionism. The silver lining is that Trump’s policies could be a catalyst for China to accelerate much needed reforms, such as cleaning up overcapacity and reforming the banking system. While we anticipate that Trump’s bark is worse than his bite, China needs to manage a slowing economy against Trump protectionism.
Watch the video to hear CLSA’s top macro trends, investment themes and sector outlooks for the markets in 2017. Our Top 10 investment themes focus on policy plays and domestic growth with nine macro themes categorized into two groups (1) the impact of Trump’s policies and (2) China’s reform programme.