China enriches the portfolio

Within 'Focus' we comment on extraordinary market events and analyse capital market related special topics. In this issue we focus on China as an investment region.

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.