investment viewpoints

    China: a forward-looking view

    China: a forward looking view
    Pascal Menges - Head of Equity Investment Process and Research, Client Portfolio Manager

    Pascal Menges

    Head of Equity Investment Process and Research, Client Portfolio Manager
    Dhiraj Bajaj - Head of Asia Fixed Income

    Dhiraj Bajaj

    Head of Asia Fixed Income
    Natalia Bucci - Co-head of Convertible Bonds

    Natalia Bucci

    Co-head of Convertible Bonds
    Arnaud Gernath - Co-head of Convertible Bonds

    Arnaud Gernath

    Co-head of Convertible Bonds

    The resolve of investors in Chinese markets has been tested in recent months by a series of regulatory crackdowns on the technology, tutoring and the food-delivery sectors. Our investment teams have analysed what this could mean from credit, equities and convertible bonds perspectives.

    The pace of the change has rattled markets, leading to steep declines. But instead of abruptly exiting China, we have maintained our conviction in its long-term growth and searched for opportunities aligned with the new rules. Importantly, we believe the overarching policy direction is supportive of growth in key industries.

    Two of China’s largest policy frameworks – the most recent Five-Year Plan (2021-2025) and Vision 2035 – enshrine ambitious goals and can foster a range of investment opportunities in numerous sectors, especially technology. They are also accompanied by clear commitments to reduce carbon emissions and boost renewable-energy generation, signaling a focus on sustainability.

    We are long-term investors focused on enduring opportunity, and view the rise of North Asia as a key investment theme for LOIM. We see long-term drivers for growth and greater sustainability embedded in China’s policy commitments.

    In this infographic, we dissect the nation’s major long-term policy frameworks and identify key areas of opportunity for investors.

    0011301_LO_China_Forward_Looking_View_infographic_V32.jpg (0011301_LO_China_Forward_Lookin...

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