- Equity Portfolio Manager
- Funds
- Capabilities
- Insights
- Sustainability
- About Us
- My Account
The views expressed are those of the authors at the time of writing. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed. For professional, institutional, or accredited investors only.
The short answer: Yes, in our view. China equity is clearly out of favor with global investors these days, but if market history is any guide, it is at such times that shrewd allocators should take a closer look.
Figure 1 shows the rolling 12-month return differential between US and Chinese equities. Given China’s sharp underperformance in recent years, we think today’s valuation level may offer an attractive entry point. In prior periods where China equity has lagged by this much, it has subsequently bounced back strongly.
While longer-term challenges remain that could structurally lower China’s rate of economic growth going forward, we believe a short-term buying opportunity is now available.
Experts
URL References
Related Insights
Stay up to date with the latest market insights and our point of view.
Monthly Market Snapshot — April 2023
A monthly update on equity, fixed income, currency, and commodity markets.
EM equities: Can they prove the doubters wrong?
Multi-Asset Strategist Adam Berger offers six reasons that EM equity performance could be much more compelling in the decade ahead, from attractive valuations to economic tailwinds to mean reversion in the US dollar.
Have you looked at Brazilian equities lately?
Equity Research Analyst David Reid believes now is an opportune time for EM equity investors to consider implementing or augmenting portfolio allocations to Brazilian stocks.
Value investing: Alive and well in today’s market
Global Investment Strategist Nanette Abuhoff Jacobson expects the drivers of the next economic cycle to favor value stocks over their growth counterparts.
Private biotech market: Innovation, valuations, and capital efficiency
Co-heads of biotech private investments I-hung Shih and Nilesh Kumar join host Thomas Mucha to explore today's private biotech market, highlighting the state of deal flow, valuations, and innovation.
India equity's improving risk/return tradeoff
This is not your grandfather's India equity market. Equity Portfolio Manager Niraj Bhagwat and Investment Director Philip Brooks explain why and back their argument with risk/return data.
Today’s sweet spot for yield, the growing role of alts
Insurance Multi-Asset Strategist Tim Antonelli provides his latest multi-asset views for insurers, with an emphasis on the value of core fixed income in today's environment.
Financial Market Review: First quarter 2023
A quarterly update on equity, fixed income, currency, and commodity markets.
Monthly Market Snapshot — March 2023
A monthly update on equity, fixed income, currency, and commodity markets.
Is the long-awaited change in Japan’s fortunes finally materialising?
Portfolio Manager Dan Maguire explores why Japan may finally be exiting deflation and assesses the opportunities this structural change could create for small- and mid-cap equities.
How do bank failures impact fintech?
Global Industry Analyst Matt Ross analyzes the ways in which recent US bank failures could impact the fintech sector in public and private markets.
URL References
Related Insights