China equities: the alpha opportunity – key takeaways

  • If investors are looking for higher alpha generation, look no further than Chinese equities;
  • The Chinese government means what it says on climate and carbon neutrality by 2060;
  • A-shares continue to offer rich opportunities for active investors;
  • Recent reforms and structural factors are creating new opportunities for long/short strategies – and investors can actually short now in China;
  • If you are concerned about volatility and want to reduce your overall beta without compromising absolute returns then China equity long-short and hedge fund strategies could be considered.

Donna Kwok, UBS-AM Head of Asia Strategy, opened the session by remarking on how China’s equity markets had a strong year in 2020 and how rapid policy support and decisive Covid-19 control controls drove a stout economic rebound in 2H20.

Donna continued, ‘But while the 2020 story remains fresh in our minds, we can’t forget that Chinese equities continue to offer very rich pickings, especially for active investors.’ 

To illustrate this from a high level, Donna turned the session over to an expert three-man panel, starting with Bin Shi, Head of China Equities.


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