A change of climate: Growing appetite for structural growth themes fuels China's resurgence

Deep Dive into Chinese equities

clock • 3 min read

In 2020, with the onset of Covid-19, Chinese markets were clear outperformers relative to other major markets. This was due to the Chinese government's eventual effective containment of the virus, which meant life broadly returned to normal in the country.

China was the only major economy to grow last year, with GDP growth of 2.3%, and the IMF predicts the economy will grow 8.4% in 2021. Positives include strong growth in exports, manufacturing and industrial profits. On the other hand, to support this growth China's debt-to-GDP ratio likely rose by another 30%. Consumption growth has also lagged which has put a dent in policymakers' aim to rebalance the economy.  This year, Chinese markets did well until mid-February, again outpacing other major markets. The dollar: China's Achilles heel However, at this point concerns rose over ...

To continue reading this article...

Join Investment Week for free

  • 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

Join now

 

Already an Investment Week
member?

Login

More on Asia

Aviva Investors' Wakefield: Is Japan's stock-market sugar rush sustainable?

Aviva Investors' Wakefield: Is Japan's stock-market sugar rush sustainable?

New regulations to 'improve competitiveness'

Baylee Wakefield
clock 14 March 2024 • 4 min read
 abrdn's Yeo and Kwik: Will the dragon soar in 2024 for China?

abrdn's Yeo and Kwik: Will the dragon soar in 2024 for China?

'Cause to be optimistic'

Elizabeth Kwik and Nicholas Yeo
clock 09 February 2024 • 4 min read
What happened to China in 2023?

What happened to China in 2023?

Nine experts debate

Investment Week
clock 16 January 2024 • 5 min read
Trustpilot