Key insights
Key insights
- Economic and regulatory conditions have started to improve in China. New COVID cases have come down as the impact to the economy diminishes. Partly owing to the resilient spirit of the Chinese people and companies, China’s exports have mostly stayed the course amid lockdowns and logistics disruption. We expect further normalization in the supply chain and export activity.
- There seems to be more clarity in the regulatory environment in recent months as we continue to closely monitor policy risk. With economic stability as a key target in the short and long run, we could see more stimulus to support growth.
- Global investor sentiment has stabilized and could improve further. We think it has reached the inflexion point of recovery from pessimism as market returns to fundamentals.
- We have increased the number of stocks in our portfolios seeking to mitigate macro risks as we continue to focus on high quality, industry leading companies and look for potential long-term winners among the oversold.
China equities had a tough start to 2022 and underperformed other emerging markets with regulatory headwinds continuing to weigh heavily on the market. But as the first half of the year wore on, we saw more favorable sentiment with global investors returning in earnest in May. In this webinar, our Head of China Equities Bin Shi discussed how we are well positioned for the rest of the year and the future.
