Five common concerns when allocating to China
Will the next century belong to China? We discuss investors’ common concerns on China’s growth trajectory, accessing domestic growth, geopolitical ...
Oct 12, 2020
In order not to miss out on the breadth of opportunities available in China, we believe investors should therefore take an all-China approach, i.e. flexibly investing across domestically-listed A- and B-shares, Hong Kong listed H-shares, red chips, P chips and US-listed American Depositary Receipts (ADRs). This leaves a universe of over 6,000 stocks, equating to approximately US$ 12 trillion of market cap, accessible to investors.
Source: Bloomberg, Ninety One, January 2020Capturing better risk-adjusted returns through an all-China approach
Source: Bloomberg, eVestment, 30 June 2020.
In this viewpoint, we discuss the benefits of taking a wide lens to China’s equity markets and explore how an all-China approach has the potential to achieve attractive risk-adjusted returns through a proprietary 4Factor investment framework.Read more here
Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income. 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.
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.