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.
China’s Two Sessions set out a modest growth target of “above 6%” for 2021 while IMF revised up China’s 2021 GDP growth forecast to 8.4%..
GDP growth forecast (%)2
Most of the consumers are spending more on Lifestyle and Services. We remain constructive on property management companies which are providing various new value-added services to the community. Amid the accelerating market consolidation, top-100 players of residential property management companies are expected to grow at 21% Compound Annual Growth Rate (CAGR) over 2020-25, doubling the market share to 48% in 2025 from 24% in 2020.
Basic services revenue for property management3
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 608 billion
Assets under management10