Eligible under Capital Investment Entrant Scheme (CIES)1
Given China’s ongoing stimulus and opening-up of stock markets, we believe the road ahead is paved for investors with opportunities.
GDP growth across the globe is expected to turn negative.in 2020 while the estimate for China is expected to be +1.8%. Looking ahead, the GDP growth estimate in China is expected to continue outstripping that of developed markets.
GDP growth forecast (%)2
Despite challenges for bricks-and-mortar stores during the pandemic, consumers move to online consumption.Momentum for online consumption seems irreversible. Online retail is expected to further stimulate and fulfill new demand with a penetration rate of 37% of total retail sales by 2023E.
China’s online retail penetration rate3
Strengthening innovation capacity and achieving breakthroughs in core technologies are key for China’s “dual circulation” strategy. We expect to see more domestic national champions to strive on homegrown innovation and achieve scale, such as in electric vehicle areas.
Global electric vehicles battery manufacturer market share (2019)4
With an ageing population and the rapid emerging landscape for innovative drug discovery, notable potential upside is expected for the biologics market in China. In addition, industry consolidation and a more favourable regulatory environment should provide opportunities for pharmaceutical companies.
China biologics market sales (USD bn)5
R&D / innovation
Our investment team holds a medium- to long-term view, but makes adjustments in the short-term according to market conditions. We aim to hold a concentrated portfolio with 40-55 stocks6.
Our investment team makes flexible and dynamic allocations between China and Hong Kong equities, according to changes in market conditions, government policies, industry trends and individual holdings.
In addition to successfully capture many uptrend opportunities through teamwork, we also select stocks through lateral thinking. By thinking a few steps ahead, we target to achieve outstanding results that outperform others in the industry.
Equity investment experts in the Greater China region8
of track record9
USD 488 billion
Assets under management10