In May 2020 our research spoke to a satellite holding in emerging market equities (EM) having the potential to add value for investors over the medium to longer-term. Following very strong performance from EM equities in the second half of 2020, the past 6 months have been more challenging, with a broadening regulatory crackdown impacting the Chinese equity market in particular.
Is the regulatory crackdown a warning of a structural shift in the attractiveness of Chinese equities, or is it just reflecting the reality of EM/China investing and therefore an opportunity to accumulate further exposure for investors with a multi-year time horizon?
We analyse the situation in China and put forward our current investment views, covering:
- What has been happening in China
- What China is trying to achieve
- Our view on whether China is still an attractive medium to longer-term investment destination
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David is one of Australia’s leading investment strategists.