19/04/2024
Expert Talk
The Upside of Geopolitical Uncertainty
Multi Asset Fund Flash: Position for China’s Tactical and Medium-Term Opportunities
Tuesday 14 November 2023
Expert Talk
The risk-reward for China equities at this current juncture is attractive
China’s equity markets have been challenged in 2023 by slower than expected GDP growth, a lag in policy delivery and geopolitical tensions, paring back much of their gains following the rally which started in October 2022. Chinese equities trade at attractive valuations and are well positioned for a technical upswing into year-end. Furthermore, given low foreign investor positioning, the likelihood of a corporate earnings upcycle, the potential for further policy support, excess domestic household savings and the current state of market valuations, we believe Chinese equities present investors with an asymmetric risk-reward proposition.
