[China Pharmaceutical Network Expert View] On December 21st, Franklin Templeton Investment Group released its 2017 investment outlook report. The report pointed out that it will continue to be optimistic about small Asian stocks, because in the long run, this type of stock can benefit in particular from the expected steady growth potential. In addition, Franklin Templeton said that the fundamentals of the biotechnology and pharmaceutical industries are also quite strong.

(Franklin Templeton)

"On the Chinese stock market, although we are wary of the recent rapid rise in the share prices of many Chinese Internet stocks, we still believe that emerging market Internet stocks have investment value." Franklin Templeton said.

The report pointed out that Franklin Templeton is cautiously optimistic about the global stock market in 2017. Although the pace of economic growth is relatively sluggish and investors are affected by uncertain factors, corporate profits and operating margins continue to rise, and mergers and acquisitions activities are accelerating. These driving forces are beneficial to stocks in many regions. In addition, sluggish global growth may drive developed markets outside the United States to push additional fiscal stimulus measures. Emerging markets may implement longer-term economic adjustments and structural reform policies. The main beneficiaries of rising potential growth and increased infrastructure spending are industrial stocks.

The fundamentals of the U.S. economy are still strong, and a stronger U.S. economy may provide positive momentum for many other economies and markets, which may make the stock market leadership shift from the U.S. to other regions. "We believe that in the global stock category, emerging markets have more investment opportunities than stocks in developed markets."

As far as the industry is concerned, the report believes that companies in the consumer-related and information technology industries are particularly attractive in the current environment. With the increase in wealth in emerging markets and the growing consumer class, certain stocks in the consumer industry can benefit from economic expansion and spending growth in the region, thereby providing effective investment channels. The competitiveness of information technology continues to increase, and it is increasingly becoming an indispensable link in emerging markets. In addition, the report also analyzed the global economic situation in 2017. "In 2016, the global economy was generally in a downturn. Many governments introduced fiscal stimulus policies or implemented economic reforms. It is expected that the global economy will gradually improve in 2017." The report pointed out that in terms of regions In other words, the United States will enter its eighth year of economic expansion and maintain a moderate growth in the short term; China's economic growth will stabilize with a strong momentum; and the GDP growth of emerging market countries will accelerate steadily. On the other hand, the global economy will also face a series of tests, including recent political events in the United States, geopolitical issues, currency fluctuations, the rise of populism in Europe and the United States, and the rise of protectionist policies. (Source: China Economic Net. Original title: The fundamentals of the biotechnology and pharmaceutical industries are also quite strong)