With asset owner, manager, service provider and consultant views, this report takes a 360-degree approach in considering the various investment opportunities and challenges in mainland China as it continues to build on the major theme of opening its onshore markets to the outside world.
As Covid-19 challenges both governments and the global economy, China is expected to be the only major economy forecast to grow this year. Yes, the world’s second-largest economy bucks the global trend in this regard, but more importantly, it helps keeps its tech ambitions on course.
There is common agreement between investors that bifurcation between China and the West will continue to accelerate, and technology is a key arena in which where this will play out.
This presents a bigger investment opportunity set to the wider world and when combined with the fact that it has the second-largest equity and bond markets globally with very low rates of foreign ownership, it is little wonder that international money managers are queuing up to access this sizeable market.
It is important to bear in mind that 12 months is too short a time to determine long-term outcomes – particularly during times of volatility – but the groundwork for long-term investment is being laid as the routes to investing into onshore China become easier.