China enriches the portfolio

China has ambitious goals, both economically and geopolitically. China’s importance in the capital markets is also increasing. A broadly diversified portfolio can therefore hardly afford to ignore Chinese capital markets any longer, especially since they offer many advantages – such as attractive growth investments, high alpha opportunities, diversification, and advancing professionalisation – and are both globally underinvested and fairly valued. However, the turbulence of 2021 in the Chinese equity markets caused by a rebalancing of the economy, regulatory measures and a real estate crisis, put investors to the test. As a result, scepticism prevails among many investors and they wonder whether China is still investable. We believe that China continues to offer many opportunities if one focuses on the right market.