About the bank Investor Relations


Rietumu Asset Management experts: “China’s Xi Jinping opens door to long-term rule”

30-Oct-2017, 16:57 / Products & Services The specialists of Rietumu Group have prepared an overview on the return of the investment funds of Rietumu Asset Management (RAM) for September.

Along with information on the structure and dynamics of the funds, the review contains the traditional analysis of the current political events and key economic factors that exert an influence on financial markets.

“Hundred years ago a historical event happened that shaped the world history. The Russian Revolution had changed the fate of dozens of nations, and influenced un many respects the development of civilization during the last century. Despite that the state that emerged after October Revolution had collapsed, the last month could again be called Red October. The 19th National Congress took place in China, a country that confidently moves to the throne of world leadership. Undoubtedly, the results of communist party congress will make an impact on the world’s development during the next decade,” say RAM experts.

Remarkably that the ruling Chinese Communist party has failed to announce a potential successor to its sitting general secretary. For comparison, the fact that XI Jinping will become a new general secretary had already been known in 2007 year. It’s worth mentioning that Chinese president Xi Jinping has accumulated enormous power not seen since the era of Mao Zedong. As a result, speculations have risen that Xi Jinping will attempt to remain in power for the third term. However, the fact that powerful head of anticorruption body, Wang Qishan, confirmed to be retiring, somewhat reduced a likelihood of the third term.

The party agreed to add amendments to the party’s constitution under the name of current leader - “Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era”. The Chinese leader outlined a need to modernize army, continue to fight corruption, and proceed with the One Belt and One Road Initiative. The initiative is an extremely ambitious infrastructure project with an aim to connect China with Europe, Middle East and South Asia through sea and land trade routes. It’s worth mentioning that a head of major mining company is confident that the project will largely increase demand for hard commodities in the midterm.

Catalan independence referendum was held in the beginning of October and Italy autonomy referendums were held in Lombardy and Veneto at the end of month. “In both cases, majority of participants voted in favor of more independence from central government. Interesting that driving idea behind referendums was discontent to the fact that wealthy regions have to subsidize poor regions. Worth mentioning that the results of referendums could have major consequences for the European Project,” note RAM experts in the review.

The review on RAM and the current comments of the specialists can be found here.

Rietumu Asset Management (RAM) is part of Rietumu Bank, the leading private bank in Latvia. The company provides professional asset management services. RAM’s products and services are intended for a wide range of investors and are designed to meet the specific demands and needs of each customer. In the current market conditions, RAM’s specialists offer their customers the ability to reach an effective yield to risk ratio.

DISCLAIMER: This overview (including any attachment (-s)) does not constitute a request, offer, recommendation or invitation of any kind to buy, sell or redeem any financial instruments or to conclude and/or to perform other transactions of any kind. The authors of the information presented in this overview, as well as JSC “Rietumu Asset Management" IMF, registered in the Commercial Register of Republic of Latvia on January 29, 2014, registration number 40103753360, legal address: 7 Vesetas Street, Riga, LV-1013, Latvia, hereinafter referred to as “RAM” , both together and individually, are not liable for possible use of the information presented in this overview, including any direct or indirect damages (including lost profits), as well as any penalties. Evaluations, opinions and forecasts presented in this overview are based solely on the RAM’s specialists' conclusions regarding financial instruments and issuers considered in this overview. While the information contained in this overview is obtained from sources believed to be reliable, the RAM does not guarantee its accuracy and completeness. Any of your investment decision should be fully based on your assessment of your personal financial circumstances and investment objectives. The RAM draws your attention to the fact that transactions in the securities and financial instruments market involve risk and require appropriate knowledge and experience.

Eleonora Gailisha
Mass Media and Public Relations
Phone: +371-67020506
Fax: +371-67020563
E-mail: egailisha@rietumu.lv
24h Customer Service
+371 67025555 Rietumu.Info
(for calls only)
Rietumu uses cookies to improve user experience. By using our website you agreeing to our cookie policy.