Clocktower Group’s Post

The past decades have witnessed the rise of China to second-largest economy in the world, its pivot towards innovation and tech and the emergence of its stock market as an asset class in its own right. Yet, in the shadow of China’s phenomenal development, other economies in Asia have matured and now offer equally interesting opportunities. We believe that the time has come for investors to cast an eye on Asia beyond China. By Raymond Chan, CIO Asia Pacific and Yu Zhang, CFA, Senior Portfolio Manager at Allianz Global Investors . #EmbracingDisruption #Asia #China #Opportunities *** DIRECT ACCESS TO THE DOCUMENT (pdf) ***

The past decades have witnessed the rise of China to second-largest economy in the world, its pivot towards innovation and tech and the emergence of its stock market as an asset class in its own right. Yet, in the shadow of China’s phenomenal development, other economies in Asia have matured and now offer equally interesting opportunities. We believe that the time has come for investors to cast an eye on Asia beyond China. By Raymond Chan, CIO Asia Pacific and Yu Zhang, CFA, Senior Portfolio Manager at Allianz Global Investors . #EmbracingDisruption #Asia #China #Opportunities *** DIRECT ACCESS TO THE DOCUMENT (pdf) ***

In the #GlobalSouth, various trends are shaping the economy and posing challenges to the global financial sector. Trade partnerships with China and Russia are increasing noticeably, while correspondent banking ties with Western banks are declining. At the same time, there's a record level of debt repayment and mounting pressure to adhere to financial and governance standards set by Western entities. Additionally, there's an urgent need to improve access to finance for small and medium-sized enterprises, which are crucial for generating employment opportunities, especially in tackling youth unemployment—a significant source of instability. Given the importance of these issues, the second session of the symposium 'Great Power Rivalries in the Global South: Navigating Financial and Economic Security Issues in a Multi-Polar World,' hosted by Financial Services Volunteer Corps with support from Carnegie Corporation of New York and the Regional Economic Programme Asia (#SOPAS) of KAS Japan, posed the question: how can we ensure they receive more attention on the agendas of official international forums such as the Financial Stability Board and Basel Supervisors Committee? #FinancialStability #EconomicDevelopment

Against a backdrop of uncertainty in global geopolitics and the Fed’s interest rate policy, investors are looking to diversify in asset classes with more stable returns, lower volatility and uncorrelated price actions against major global asset classes. Speaking at a Bond Connect Company Limited event in Hong Kong, Cary Yeung, our Co-Head of Emerging Markets Corporate Fixed Income and Head of Greater China Debt commented, “Chinese bonds do exactly that.” Cary explains that investors can benefit from China’s accommodative monetary policy against the tightening of monetary policies elsewhere worldwide, and this diversification nature of Chinese bonds will likely last as China is expected to have independent economic cycle against global peers. #Bonds #China #Asia

How did investors react to major US political changes, Chinese economic policy meetings and Q2 corporate earnings being released? Latest trends for EPFR-tracked asset classes saw: >> $2 billion inflow towards Technology Sector Funds >> China Equity Funds jump to a 24-week high >> 13th inflow since mid-April for US Equity Funds Read the latest Global Navigator for more investor sentiment trends >> https://hubs.li/Q02Jph1G0

Lan Wang Simond 王岚, Head of Greater China Total Return strategy, shared valuable insights on the Chinese market at the Asian Private Banker annual DPM Leaders Conversation in Hong Kong and Singapore last week. With over 25 years of experience, Lan highlighted that China should be seen as an alpha market rather than beta. She emphasized the importance of a total return approach for equity investors, given the favorable landscape for bottom-up stock picking. Lan expressed confidence in the market's potential and identified market dispersion as an opportunity for long-short strategies. She expects certain sectors in China to outperform GDP growth, offering asymmetrical returns. #alternatives #longshort #China

Years of geopolitical tit-for-tat with the US, Europe and even its neighbours in Asia, when combined with economic turbulence following the worst of the Covid-19 pandemic has taken a toll on Chinese convertible bonds. But a strong wave of convertible bonds issued by some of China’s best-regarded multinationals has sparked hopes that the worst is over for CB bankers covering the world’s second-largest economy. That, to be honest, remains to be seen: https://lnkd.in/gR8hrbcH

Gareth: Now is time for Tactical China Haslinda: If you Dare! :) Fun talking with Haslinda Amin as always. In the below interview with Bloomberg Media yesterday, we discussed the potential tactical opportunity within China. We see value on the back of : 1. prospects of cyclical economic/earnings recovery 2. policies more supportive of growth/financial market recovery 3. regulatory headwinds have abated 4. investor positioning very light. Short-to-Medium term, we prefer China-A shares over H-shares, with a balance between beaten-down value names that benefit from cyclical recovery and structural opportunities (renewables/EV-related/high-tech, etc.). However, medium-to-longer term investment case is uncertain given rising US-China geopolitical tensions, and structural challenges (debt, demographics, youth unemployment, property sector overhang) which likely caps valuations. Risks remain around Growth and whether further policy support measures continue to disappoint investors. Further escalation in geo-political tensions also remain a real possibility Active Management is key. Idea is 10% | Execution is 90% #activemanagement #chinamarket #china https://lnkd.in/efsZBMeb

For investors looking for long-term growth, China's current economic scenario might be an untapped avenue worth considering. Navigating the volatile and complex markets of China requires more than just capital; it demands expertise and strategic foresight. Many global investors have retreated due to perceived economic instabilities and strict regulatory measures, leaving Chinese equities at substantial valuation discounts compared to other markets. June Lui, lead portfolio manager of Polen Capital's China growth strategy, offers a compelling perspective for those considering entering or re-engaging with the Chinese market. Despite the risks, Lui argues that now is an opportune time for fundamental investors to acquire quality companies at considerable discounts. She believes that current market conditions have sifted out fleeting investors, leaving a wealth of undervalued assets—what Lui metaphorically describes as the "pearls left on the beach when the tide goes out." 🎥 Watch the insightful dialogue between Jean Maunoury, deputy CEO-CIO, research and investment at iM Global Partner and June Lui on navigating the intricacies of the Chinese market and identifying potential investment gems. For more information on our Partner, Polen Capital, please visit: https://lnkd.in/eKz6_Bcw #AssetManagement #InvestmentManagement #China #markets #Equities #PeoplePerformance

Investors should question the uniformly negative and pessimistic view of China. Instead, we should consider and weigh a much broader perspective. Read on for highlights from the UBS Greater China Conference 2024. https://bit.ly/3I9iutm #ShareUBS #China #Marketoutlook