China is expected to lead the global economic recovery, with investment flows into the country likely to accelerate over the coming months, according to the preliminary findings of a Funds Europe survey conducted in partnership with Standard Chartered.
The 2020 China Investor Sentiment Survey, which closed last week, found that 47% of early respondents said their institutions (or investor clients) are looking to increase their investments in China.
A number of fund managers have already made moves to tap into this recovery potential over the course of the last few months, launching funds focusing on China.
One such asset manager was Lombard Odier Investment Managers (LOIM), which added a Chinese stock market strategy to its global high conviction funds.
The China High Conviction strategy will be linked to growing Chinese domestic demand, driven in part by millennial consumption patterns. This, according to LOIM, is where the future growth potential is to be found.
Towards the end of August, BMO Global Asset Management (BMO GAM) launched an ESG-oriented fund targeting ‘responsible’ businesses in the China A-Shares equity market.
According to the asset manager the strategy seeks to invest in businesses that “help address sustainability challenges in China that are prevalent across the developing world”.
Earlier in June, JP Morgan Asset Management (JPMAM) also unveiled a strategy it said aims to capture cross-border opportunities in China’s bond market.
The China Bond Opportunities Fund, available to international investors, seeks to provide diversified access to China’s “vast” fixed income market.
According to the firm, China’s bond market has grown rapidly over the last two decades to reach $14 trillion (€12.4 trillion) and is increasingly gaining recognition from global investors.
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