Published by Global Banking & Finance Review®
Posted on December 9, 2024
1 min readLast updated: January 27, 2026
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LGIM's Sonja Laud highlights China's economic difficulties and sees value in UK gilts as China plans a looser monetary policy.
LONDON (Reuters) - China still faces a very difficult economic situation and it is hard to be positive on the world's second-biggest economy just yet, Legal & General Investment Management's Chief Investment Officer Sonja Laud said on Monday.
China will adopt an "appropriately loose" monetary policy next year, the first easing of its stance in some 14 years, alongside a more proactive fiscal policy to spur economic growth, the Politburo was quoted as saying on Monday.
"You can't really stimulate away the excess in real estate that has been built over decades," Laud said at an LGIM outlook event with media.
"The domestic consumer cannot compensate for the weakness that we are seeing in particular unfold in the real estate space," she said, adding that potential U.S. tariffs were another headwind.
"We're not too positive on this."
Laud added that, separately, UK gilts offered value, with the UK budget now digested by markets and the Bank of England likely to continue lowering interest rates.
LGIM manages over a $1 trillion of assets.
(Reporting by Naomi Rovnick, Writing by Dhara Ranasingghe, Editing by Amanda Cooper)
The article discusses LGIM's outlook on China's economic challenges and the value of UK gilts.
LGIM is not very positive on China's economy due to ongoing challenges and potential U.S. tariffs.
LGIM sees value in UK gilts, with expectations of continued interest rate cuts by the Bank of England.
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