CFA Society Finland event year ended with a topical view on China

Screen: Mikael Mattlin

Screen: Catherine Yeung

What an exceptional year it has been again. We at CFA Society Finland have been lucky to be able to see our member and candidates face to face during 2021, and the year concluded with a highly topical theme on China, and its economic and political situation. Our board chair, Antti Raappana, CFA, was hosting the event and moderated the conversations.

After participants had a chance to catch up and enjoy some breakfast at the Glo Hotel, the session started with a fireside chat with Mikael Mattlin, Professor of Political Science at University of Turku. Mikael spoke on the current political tensions between China, Taiwan and the US, but also other closely linked countries like Australia and Japan. The western front is tightening again, and growing restrictions on Chinese investments abroad is not making the relationship with west any easier. Regarding domestic policy, Mikael discussed the “common prosperity”-ideology, and how it will affect the Chinese society as a whole. With big social and economic disparities between people and regions in China, we will see how this new policy will affect the structure of Chinese society. The critical topics to follow are the overall situation between the superpowers and China’s internal political situation. Can China transform its growth model into a more sustainable socioeconomic structure?

Next we were joined by Catherine Yeung, an Investment Director for Fidelity International, Hong Kong. Catherine led us to the present Chinese economical situation in the midst of the long-standing global pandemic. The common prosperity-policy is affecting education, property and health care areas, and the new social demands are challenging many of the old business models. The stability of domestic economy is key factor to China and it will do its best to secure its own supply chain. But also China is affected by the global trends as the “green economy” demands and regulations become a factor in how local companies operate. Catherine also highlighted the important part the consumer behaviour and its effect on local companies. at a time where consumer income has been rising fast. Internet influencers and live streamers are leading the way on how and what products are sold to the end user. Important considerations for next year’s economic outlook: global policy changes and the decreasing household spending, and the society’s overall social structure change and effect on the local and global economy.