William Yuen, co-manager of Invesco’s PRC Equity Fund, discusses long-term investing in the China market.
The firm has become `reasonably constructive’ on mainland equities after multiple years of underweighting China, according to Romain Boscher, global head of equities, based in Europe.
Fund managers share their views on investing in Chinese exporters, who could be hit by trade protectionism or benefited by a falling RMB.
Blue chips in Hong Kong and some A-shares look attractive given the southbound capital flows via Stock Connect and as the MSCI makes a decision on inclusion in June, according to fund managers.
Domestic consumption and services companies in China, India and Indonesia are attractive as potential trade barriers loom, said Fan Cheuk-wan, HSBC Private Bank head of investment strategy in Asia.
China risk scenarios have low probability in 2017 and valuations are among the most attractive in the region, according to Anthony Ho, Amundi Asset Management’s deputy CEO for North Asia and chief investment officer for Asia ex-Japan equities.
The new US president’s anti-trade agenda is a risk that is overblown in regards to China, according to Joshua Crabb, Old Mutual Global Investors’ Hong Kong-based head of Asian equities.
The bank has moved to an overweight on its China equities allocation from an underweight at the start of 2016 after selling India equities, said Tuan Huynh, chief investment officer and head of portfolio management for the wealth management division in Asia-Pacific.
Kai Kong Chay, Greater China equities senior portfolio manager, said he is selectively buying cyclical Chinese commodity stocks.
Commodity price recovery presents an opportunistic play on some cyclical sectors such as Chinese upstream oil companies, said David Gaud, Edmond de Rothschild Asset Management’s senior fund manager and global investment specialist.