Amid the fog of investor uncertainty coming from COVID-19, US-China tensions, and the US presidential race, our team of China experts Bin Shi, Hayden Briscoe, and Gian Plebani gave their views and expectations on the China investing outlook by asset class in a livestreamed conference in Hong Kong.
“We expect many more high-quality companies coming from a wide range of sectors in China's markets.”
Bin Shi, Head of China Equities
“2020 was a game changer for global bond markets. China fixed income has an excellent case from yield and capital appreciation perspectives.”
Hayden Briscoe, Head of Fixed Income, Asia-Pacific
“China's economy has seen a strong V-shaped recovery.”
Gian Plebani, Portfolio Manager, Investment Solutions
China Forum 2020 - in a nutshell
- China's economy has seen a surprisingly strong V-shaped economy;
- China high-yield bonds currently offer strong potential risk-adjusted returns currently;
- China onshore fixed income offers an attractive return/risk profile compared to most global markets and CIOs should be rethinking their asset allocations;
- China has done a good job of containing the COVID-19 virus, the outbreak has accelerated a series of investible trends like consolidation within industries; the shift from offline to online across business segments; and increased investment in Research & Development and innovation;
- We remain constructive on China equities as long-term structural changes remain intact; markets are buoyant but long-term investors must stay disciplined
Setting the path for China investments
With COVID-19, US-China tensions and slower global growth fogging the way forward, how can investors navigate market trends and set their path for the future?