- Co-Head of Multi-Asset Platform
Skip to main content
- Funds
- Capabilities
- Insights
- About Us
Asset classes
Hong Kong (香港), Individual
Changechevron_rightThe 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.
In the last 15 years, economic growth has been booming across emerging markets (EMs), with China and India generating around 10% GDP growth per year. As investments poured into these markets, investors naturally assumed that this would feed through into earnings per share (EPS) growth, the main determinant of long-term stock market returns. However, macro growth is not market growth (Figure 1).
Figure 1
The US and China are the best examples of this dynamic. China EPS growth has stagnated while US EPS growth has been exceptional, despite China’s economy growing at twice the speed of the US.
Index composition and whether underlying companies are reflective of the economy at large can drive disparities. Within the US, growth has been led by the tech sector, which comprises a lower part of the overall US economy compared to its market cap. These large- cap companies have captured more market share compared to small/unlisted companies.
When EPS is diluted by additional company share issuance, it can further exacerbate this misalignment with GDP growth, which has been a significant drag within China. Index rebalancing toward lower-earning companies has also been a factor in China’s lower market returns. Some of the largest EM ex China markets, such as Taiwan, realized outsized returns relative to GDP growth, as large companies generated most of their earnings abroad, not in the country of domicile.
Experts
Related funds
Capturing Quality Growth opportunities in US equities driven by "3D" forces
The U.S. stock market has regained focus due to the AI boom, and with the upcoming election this year, how can one position themselves to seize opportunities? We believe that the U.S. stock market will be driven by ‘3D’ market dynamics. Investors should consider strategies that carefully select high-potential businesses or quality companies to capture attractive opportunities. (Only available in Chinese)
Chart in Focus: Broadening earnings growth signals healthy US equity market
Over the past year, the markets have seen the companies best poised to harness and benefit from new innovations within artificial intelligence rewarded accordingly. Can this signal more upside for the entire US equity market?
New era demands a nimble approach to credit
Our expert explains why deep research and an active approach are effective ways for fixed income investors to uncover credit opportunities in today's market.
There is more than one way to approach growth equities
Portfolio Managers Steven Angeli and Joe Chung, and Investment Specialist Casey Vale discuss how looking at growth equities in a different way may help uncover opportunities beyond the dominant market narrative.
Multiple authors
Rapid fire questions with Tim Manning
In this edition of our "Rapid Fire Questions with Portfolio Managers" video series, Tim Manning shares his views on 3 key questions on US equity market outlook.
By
Quality growth — a less volatile sweet spot?
Growth stocks can be volatile, especially when companies fail to meet expectations. However, high-quality growth companies can help mitigate downside risk while still offering potential for long-term outperformance. How can investors find the sweet spot?
Multiple authors
An active investor’s guide to growth equities
Our experts offer their view on the current economic environment, explore best practices for investing in high-quality growth equities, and highlight where they see opportunity now.
Multiple authors
Capturing Quality Growth opportunities in US equities driven by "3D" forces
The U.S. stock market has regained focus due to the AI boom, and with the upcoming election this year, how can one position themselves to seize opportunities? We believe that the U.S. stock market will be driven by ‘3D’ market dynamics. Investors should consider strategies that carefully select high-potential businesses or quality companies to capture attractive opportunities. (Only available in Chinese)
Chart in Focus: Broadening earnings growth signals healthy US equity market
Over the past year, the markets have seen the companies best poised to harness and benefit from new innovations within artificial intelligence rewarded accordingly. Can this signal more upside for the entire US equity market?
New era demands a nimble approach to credit
Our expert explains why deep research and an active approach are effective ways for fixed income investors to uncover credit opportunities in today's market.
There is more than one way to approach growth equities
Portfolio Managers Steven Angeli and Joe Chung, and Investment Specialist Casey Vale discuss how looking at growth equities in a different way may help uncover opportunities beyond the dominant market narrative.
Multiple authors
Rapid fire questions with Tim Manning
In this edition of our "Rapid Fire Questions with Portfolio Managers" video series, Tim Manning shares his views on 3 key questions on US equity market outlook.
By
Chart in Focus: Can this equity bull market last?
Can this current equity bull market last? In this latest edition of Chart in Focus, we focus on the indicators of whether it may come to an end or keep running.
Multiple authors
Quality growth — a less volatile sweet spot?
Growth stocks can be volatile, especially when companies fail to meet expectations. However, high-quality growth companies can help mitigate downside risk while still offering potential for long-term outperformance. How can investors find the sweet spot?
Multiple authors
An active investor’s guide to growth equities
Our experts offer their view on the current economic environment, explore best practices for investing in high-quality growth equities, and highlight where they see opportunity now.
Multiple authors
Capturing Quality Growth opportunities in US equities driven by "3D" forces
The U.S. stock market has regained focus due to the AI boom, and with the upcoming election this year, how can one position themselves to seize opportunities? We believe that the U.S. stock market will be driven by ‘3D’ market dynamics. Investors should consider strategies that carefully select high-potential businesses or quality companies to capture attractive opportunities. (Only available in Chinese)
Chart in Focus: Broadening earnings growth signals healthy US equity market
Over the past year, the markets have seen the companies best poised to harness and benefit from new innovations within artificial intelligence rewarded accordingly. Can this signal more upside for the entire US equity market?
New era demands a nimble approach to credit
Our expert explains why deep research and an active approach are effective ways for fixed income investors to uncover credit opportunities in today's market.
URL References
Related Insights
We seek to exceed the investment objectives and service expectations of our fund investors and their advisers worldwide
© Copyright 2025 Wellington Management Hong Kong Limited. All rights reserved.
WELLINGTON MANAGEMENT® is a registered service mark of Wellington Group Holdings LLP.
Wellington Management Hong Kong Limited 威靈頓管理香港有限公司 is a private company incorporated with limited liability in Hong Kong, with its address at 17/F Two International Finance Centre, 8 Finance Street, Central, Hong Kong. It is licensed and regulated by the Securities and Futures Commission of Hong Kong with CE Number AJB478.
Chart in Focus: Can this equity bull market last?
Can this current equity bull market last? In this latest edition of Chart in Focus, we focus on the indicators of whether it may come to an end or keep running.
Multiple authors