BlackRock Investment Institute considers China as separate from other EMs for first time

One of key themes in its 2021 mid-year outlook

clock • 2 min read
Wei Li, global chief investment strategist at the BII
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Wei Li, global chief investment strategist at the BII

BlackRock Investment Institute (BII) has said it is time for China to be considered “an investment destination separate from” emerging markets (EM) and developed markets (DM) and revealed it is breaking out Chinese assets from EMs “as distinct tactical allocations” for the first time in its 2021 mid-year outlook.

The asset manager's research division identified ‘China stands out' as one of three themes for the rest of 2021, alongside 'the new nominal' and 'journey to net zero'. It pointed out that China has come through "the Covid-19 shock stronger than global peers" and called the country "a distinct pole of global growth". Managers remain optimistic on China despite regulatory crackdown "China quickly bounced above its pre-pandemic growth trend, and policymakers have shifted to tighten policy and refocus on stabilizing leverage, with growth now slowing," BII stated in the mid-year report....

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