China: The land of buying opportunities

MSCI China index has returned 500% since 2004

Since peaking in February 2021, the MSCI China index has declined by 33% to a recent trough in August largely on the back of regulatory concerns.

While the recent turbulence has led some investors to suggest that China is now 'uninvestable', we believe this sell-off presents a compelling investment opportunity for long-term allocators to invest in one of the largest and fastest-growing economies in the world. It is important to remember we have been here before. China is a market that often provides investors with an opportunity to buy in at significantly lower levels every few years. Over the past 17 years, the MSCI China index has experienced five drawdowns in excess of >30% in US dollar terms - fears of a hard landing in ...