Investors have been expecting an interest rate hike, but what they got last Friday was a reserve requirement hike. With a prudent monetary policy, retail investors are now wondering where to invest? Let's take a look at what the experts are advising.

China has raised its required reserve ratio 6 times this year, but the interest rate has only been hiked once. Analysts believe there's still space for the government to raise interest rates and it could even come this year. But one thing for sure is that any gains one could earn from holding onto money at a decent rate will hardly be able to keep up with the pace of rising inflation. So where does one put their money?

Experts suggest bank financial products, securities investment funds, or national debt as the best ways to cash in. And for investors with an appetite for risk, shares and future market may offer the most handsome returns. They also say investors should watch the sectors to which the government pays close attention.

Wang Junfeng, President of CITIC-prudential Fund MGMT Co. said "We should pay more attention to emerging industries and those relevant to consumption. "

But since the market is expecting another interest rate hike, experts warn consumers to keep some money set aside in order to adjust their investments if the policies change.

Go to Forum >>0 Comments