China

The case for an allocation to China from a macro perspective

In this video, Co-Head of Multi-Asset Growth, Michael Spinks, offers our perspective on the significant changes occurring in both the equity and fixed income space, and what this means for investors.

May 20, 2021

15 minutes

Michael Spinks
In this video, Co-Head of Multi-Asset Growth, Michael Spinks, offers our perspective on the significant changes occurring in both the equity and fixed income space, and what this means for investors.

The fast view

  • Chinese economic growth may slow from the lofty heights of recent years
  • It's focus on consumption-led growth should translate into a more durable, higher-quality outcome than one dependent on volatile export earnings
  • Strengthening its internal economy will be at the centre of this and factors such as income per capita and the urbanisation rate will be key for long-term growth
  • China's push towards decarbonisation is another area that will see significant focus, providing further investment opportunities

China's vast equity and fixed income markets have dominated financial news in recent years. In order to make better investment decisions, we believe it is crucial to have a firm handle on the structural outlook for these markets, integrating top-down macro research with bottom-up security selection.

Specific risks

Emerging market (inc. China): These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems.

General risks

All investments carry the risk of capital loss. The value of investments, and any income generated from them, can fall as well as rise and will be affected by changes in interest rates, currency fluctuations, general market conditions and other political, social and economic developments, as well as by specific matters relating to the assets in which the investment strategy invests. If any currency differs from the investor’s home currency, returns may increase or decrease as a result of currency fluctuations. Past performance is not a reliable indicator of future results.

Authored by

Michael Spinks
Portfolio Manager

Important Information

This communication is provided for general information only should not be construed as advice.

All the information in is believed to be reliable but may be inaccurate or incomplete. The views are those of the contributor at the time of publication and do not necessary reflect those of Ninety One.

Any opinions stated are honestly held but are not guaranteed and should not be relied upon.

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