Taking Stock Spring 2023

Zoning in on China exposure in the Ninety One Equity Fund

Rehana Khan shares her views.

13 Nov 2023

1 minute

Rehana Khan

Working closely with our global research platforms, we have allocated capital to specific bottom-up Chinese opportunities in areas such as financial services, renewable infrastructure development, consumer growth and technology, where future earnings are promising. Investment ideas include shares such as online financial information platform, East Money Information, and NetEase – a leading internet technology company. In addition, we have an investment in Midea Group, which is the world’s fifth largest manufacturer and distributor of home appliances by revenue. Local investments such as Naspers/Prosus, as well as our exposure to diversified miners (BHP Group and Glencore) should also benefit from an improvement in Chinese growth.

Supportive policy measures will start to have a positive impact on growth momentum.

Looking forward, we are not dismissive of the problems the Chinese economy faces. However, we do believe that stimulatory and supportive policy measures will start to have a positive impact on growth momentum, lifting sentiment. This should help the earnings growth expectations as well as the rerating of companies off an exceptionally attractive base.

Authored by

Rehana Khan
Deputy Head, SA Equity & Multi-Asset, 4Factor

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