Singapore: China’s Belt and Road initiative will be a boon for frontier markets, but investors should be careful reading into the implications, says Exotix Partners LLP’s Hasnain Malek. “The start of an IMF programme can signal a positive change from policies, which were unfriendly to private, foreign investors,” he said. “China’s investment in frontier markets has shifted from extracting natural resources to building supply-chain infrastructure,” he said. Exotix views Pakistan more positively because of the Belt and Road involvement, even though China’s investment means the nation is probably delaying its re-engagement with the IMF. “Those policy anchors have generally given comfort to investors in IMF programmes.”

Source: Ethiopian News September 26, 2017 10:52 UTC