China’s political and economic outlook has a huge impact on Australian investors. In this new podcast, Pendal’s head of income strategies AMY XIE PATRICK explains the latest.

An excerpt:

Why doesn’t Beijing pump stimulus into the Chinese economy as other countries do?

“We have to remember that the Chinese political system is not a democratic system, and its principles are very socialist at heart,” says Pendal’s head of income strategies, Amy Xie Patrick.

“A very classic characterisation of the Chinese style of socialism is they don't believe in ‘helicopter money’.

"They believe money going directly into people's pockets isn't the way to common prosperity. Instead, everyone should toil in order to achieve that prosperity.

However, now we're reaching a point where the drag from the Chinese property story is so severe that they kind of have to choose a lesser of two evils.

...I think the government is on the cusp of considering more direct-to-consumer stimulus, at least just to keep the current positive momentum going for China."

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Find out more about Pendal's fixed income strategies at pend.al/fixedinterest

Pendal is a global asset manager. Find out more at pendalgroup.com

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