The sharp rebound in Chinese stocks so far this year has surprised many investors, writes Truman Du and Rob Mann, senior portfolio managers at Nikko Asset Management.
Notwithstanding the false dawn in the first half of 2015, when domestic equities momentarily perked up, the Shanghai Shenzhen CSI 300 index - one of China's main equity barometers - has generally underperformed many equity indices around the world, particularly those of the US, for the past ten years. With the latest upturn, will Chinese stocks finally start to perform in line with strong GDP growth? Our research leads us to an affirmative answer, as we see an emergence of structural changes in the Chinese economy that would support the positive case for domestic equities. Trade war c...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
