MANILA – President Rodrigo Duterte’s shift to China will be positive for the economy, as the government widens its avenues for trade and investments, a top fund manager said Friday.
Duterte is winding down a four-day state visit to China where $13 billion in trade deals are set to be signed as he repairs diplomatic ties that have been strained by disputes in the South China Sea.
“It’s very positive with all those deals coming in. I think the market will see a resurgence again. There will still be some volatility but it’s looking positive for the economy and the stocks,” BDO Capital President Eduardo Francisco told ANC’s “Market Edge with Cathy Yang.”
Francisco said he was verifying reports Chinese investors bought Philippine stocks on Thursday, after Duterte met with his Chinese counterpart, Xi Jinping and heralded “springtime” in ties.
The Philippine Stock Exchange Index was down 0.48 percent to 7,676.33 points at noon Friday. The peso averaged P48.271 to the dollar from Thursday’s close of P48.100.
Duterte also announced on Thursday that the Philippines was separating from the US. His economic managers later clarified that the country would continue trading with the West, but would strengthen alliances in Asia.
“It’s just diversification. I agree it’s not cutting ties with the US. It will augur well with the environment,” he said.
Chinese investments will be especially helpful in overhauling Philippine infrastructure, he said.