CHENGDU, Dec. 1 (NBD) -- Chief economists and strategists on Wednesday shared their observations over “interconnection and global asset allocation” in 2017 at the “First Chinese Chief Securities Forum of Hong Kong”, held in Hong Kong Special Administrative Region of China.

They also predicted the influences of RMB exchange rate, Shenzhen-HK Stock Connect, new US presidency, FED’s interest raise and other elements on global asset allocation next year.

Regarding to the stock market, Jiang Youheng, chief global strategist with Guotai Junan Securities, commented “we predicted last year that A share would first decline to 2600 points and then bounce back to 3200. Now that it stands currently above 3200, it might climb to 3600 points next year”.

Speaking of the choice of investment target, Bai Ren, the securities sales and research executive director with ICBC International Holdings Limited, regarded companies with high dividend yields, broad brand recognition yet low valuation as promising. It is advised to pay close attention to several major investment themes including the debt-for-equity swap reform, the supply-side reform, “One Belt, One Road”, “Shenzhen-HK Stock Connect” and RMB exchange rare.

With respect to the downward bond market, Cheng Shi, the chief economist and executive director with ICBC International, believed that global stock market is more appealing than bonds. Bai Ren thought Hong Kong stocks are lowly evaluated in terms of attraction. The inflation and interest rate level in 2017 stands within a slightly rising cycle. Therefore, stocks will outrun bonds on the whole.