Compared to a year ago, investors are now more willing to overlook China’s economic slowdown, realizing that current cyclical bumps will not derail the country’s prospects, UBS CEO Sergio Ermotti told CNBC.
China can still double the size of its economy even if it grows only 5 percent over the next 15 years, he added. That thinking is now “much more embedded” in the way investors see the country and the region, Ermotti noted.
“I do see a little bit more constructive attitude towards taking a risk … Usually you measure appetite of investors by their ability or willingness to take a bit of leverage on their positions. We’ve seen a little bit of pick up there,” he said.
