(Yicai Global) Dec. 3 -- Chinese investors tend to hold an excessive proportion of real estate assets and are relatively light on equity-related financial assets. As the country’s property market cools, with no guarantee that prices will keep rising, investors need to change their investment pattern, according to the chief economist at Zhongtai Securities.

The shrinking working-age population and the slowdown in urbanization have brought about a significant turning point in the realty market, said Li Xunlei. This will not change, no matter how policies are tightened or loosened.

As property prices stall, the yields of wealth management products will drop and cannot be guaranteed as before. It means that ‘non-risk’ rates of return are declining and the attractiveness of equity-related assets will rise, he said

China’s economic reforms in its capital markets have boosted the number of firms in emerging industries. These companies boast high rates of return as well as high failure rates, setting a high threshold for investors.

Green energies and technologies are the next hot item for Chinese stocks, he said. The country has laid out a timetable for achieving peak carbon dioxide emissions and carbon neutrality, so this sector will definitely have good returns in the future.

The technological roadmaps of a number of green energies are currently at the exploration and competition stage, which is conducive to the injection of capital. Hardware such as semiconductors and new materials are also good picks due to the shift to self-developed products as a result of the US trade bans, Li added.

Editor: Kim Taylor