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 forecasted China’s 2021 GDP growth at 8%, leading other major economies.
GDP growth forecast (%)2
Chinese domestic brand have gained more attention in the past decade, reshaping the competitive landscape for various customer sectors such as cosmetics, thanks to GuoChao (國潮), which refers to the rise of homegrown Chinese brands.
Chinese brands’ share trend in cosmetics3
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 (2020)4
In order to meet its ambitious target of carbon neutrality by 2060, China has to step up its effort on sustainability, the share of nonfossil fuels in primary energy consumption is expected to rise to around 20% by 2025, 25% by 2030 and over 80% by 2060, from 15.9% in 2020, according to government’s targets, solar and wind are major beneficiaries.
China renewable energy’s annual capacity addition (In GW)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 560 billion
Assets under management10