India will remain a driving force despite turmoil in global markets. Though the end of volatility is yet to be sighted, India’s prospects remain good, as capital markets follow trends in GDP and GDP trends in both India and China have been good, said Hyeon Joo Park, Chairman Mirae Asset at the Mirae Asset Media Summit in Seoul.
The end of the turmoil is yet to be sighted and it will take some time before inflation is managed and more stability is attained, said the chairman of one of the worlds largest investors in Asian equities. Having a relook at current policies on energy was also equally important as reworking the global policies on food said Park.
Sounding optimistic, he noted that the markets will be able to handle oil prices of $100 per barrel in the medium term. Any significant pick up above that will impact negatively. Though bear markets will have an impact on investment opportunities and volatility is likely to continue, a long term perspective will be important for investors. The most important aspect is identifying the companies that will lead the way out towards stronger growth. He was also optimistic about a quick end to the shift away from equities in Asia.
Positive about the real estate fund scheme launched in India and the country going forward towards attaining global standards, he was of the view that greater reforms in the real estate sector will make a more significant impact. While asset management firms were keen about investing in real estate in global cities, including Mumbai, where investments in infrastructure was very critical the current regulations did not allow asset management companies to invest directly in commercial real estate, which was a preferred area for large companies like Mirae Assets. Developed capital markets have helped India build many global companies and further reforms will have a more significant impact.’ The move could also have a positive impact on inflation.
While China is strong in manufacturing, India has a lot of young talent, which propels large number of innovations. Speaking about the trends in the currency markets, Park said that while currency appreciation may have a negative impact on exports it will have a positive impact on consumption.
Bullish about the prospects of Mirae Assets in India, the company is to launch a slew of new products including 9 equity products by end March.
