Finding growth opportunities across China’s offshore and onshore markets
WHY A CHINA EQUITY STRATEGY?
China is one of the largest equity markets in the world. It has seen phenomenal growth in recent decades. But despite the size of this market we believe it is often under-represented in both emerging market and global portfolios.
Investing in complementary markets such as China brings diversification to investors’ portfolios. With many of the companies listed on China’s onshore and offshore (Hong Kong) markets trading at attractive valuations, we believe it also offers exciting growth opportunities.
China’s onshore market is opening further, helping to institutionalize the A-share market (stocks trading on both Chinese stock exchanges) and allowing fund managers to potentially deliver more efficient returns for investors.
At BNP Paribas Asset Management we believe companies delivering sustainable and quality earnings growth at attractive prices drives alpha potential over the long term.
We take a bottom-up stock selection approach, which encompasses stocks across an “All China” universe. This includes equities on the Shanghai and Shenzhen exchanges as well as those listed offshore in Hong Kong.
Our team of locally based experts seeks to invest in a concentrated portfolio of quality growth companies with attractive ESG characteristics.
At all times there is focus on strong risk-adjusted returns. This is achieved by diversification across our portfolio and an emphasis on risk management.
We believe experience and collaboration lead to better investment decisions. These are at the heart of our investment philosophy.
We take a differentiated approach, aiming to deliver consistent outperformance in all market conditions.
The portfolio strategy is therefore designed around a growth framework. Within this we have identified three key investments themes:
- Technology and innovation
- Consumption upgrading
- Industry consolidation
Across these themes we invest in a diverse range of sectors, from information technology and new industrials to healthcare, education and mining.
At each stage we draw on the experience and expertise of our regional investment centers to identify potential investments in these sectors. This involves extensive ESG analysis as part of our stock selection process.
It is a process that ensures a consistent approach, where ideas are thoroughly tested and risk management is robust.
Our experienced team of portfolio managers and analysts is based in Hong Kong, giving on-the-ground access and insight into this diverse region.
The local team can call on the resources of our extensive network of specialists, based across Asia, the US and Europe.
The seven-strong China team is led by David Choa, who has 15 years’ experience in this sector. He is supported by Maxwell Yang and Atena Liu, who have 15 and 8 years of experience respectively.
Opportunities in China
Chinese equities – ahead of the curve
|We believe there is a profound investment opportunity in Chinese markets driven by several factors.||Year to date, Chinese equities have been one of the best performing markets globally. Is such performance sustainable?|
Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the strategies described being in risk of capital loss. There is no guarantee that the performance objective will be achieved. Past performance or achievement is not indicative of current or future performance. Reliance upon information in this material is at the sole discretion of the reader. Investment involves risks.