13 Sept 2023
As we entered 2023, there was much excitement about China’s economy re-opening and the positive impact this would have on the broader equity market. But the anticipated recovery hasn’t happened, with optimism fading following a slew of weaker-than-expected macro data. To find out what is actually happening on the ground, I made my first trip to the mainland since before the pandemic, visiting eight companies – all holdings within 4Factor – across five cities. None of the corporate management that I spoke to expect significant stimulus measures, so it is down to the individual companies to deliver growth for shareholders. In this note, I share some observations from my meetings, and explain why I left the country feeling more positive than when I landed.