-
Quality focus
We have been investing in Chinese equities since 1992. Our stable, experienced on-the-ground team combines local insights with fundamental research. In doing so, the team aims to target and invest in high-quality, well-governed companies with strong balance sheets and clear competitive advantages. We also fully integrate environmental, social and governance (ESG) analysis in our investment process and actively engage managements to improve corporate performance.
-
Structural growth
We design portfolios to benefit from structural growth in China, reflecting urbanisation and a rising middle class. As wealth snowballs, we anticipate demand for high-end food and beverages, health care, consumer finance and insurance. Digital interconnectivity bodes well for companies dealing in cybersecurity, the cloud and smart homes. China is a leader in the push for decarbonisation in areas such as renewable energy, electric vehicles, energy storage (batteries) and related supply chains.
-
Why China
China's domestic market contains unique home-grown firms in industries not accessible via offshore markets. Low correlation with global markets provides valuable diversification benefits. At the same time, investors can access different types of Chinese businesses listed offshore, such as internet firms and in sectors including education, gaming and telecoms. Both markets offer opportunities to capitalise on China's structural growth. To read our research on this diverse stock market, click here.
Our ESG approach to equity investing
We believe that environmental, social and governance (ESG) factors are financially material and can impact a company’s performance – either positively or negatively. Understanding ESG risks and opportunities, alongside other financial metrics, is therefore an intrinsic part of our research process.
The world is evolving rapidly in the current Covid-19 crisis and ESG factors will be more important than ever. We believe companies that take a wider view of their responsibilities, including all stakeholders – such as employees, customers and suppliers – are more likely to succeed.
We actively engage with the companies in which we invest, sharing insights and encouraging best practice where possible. We combine information from these meetings with the insights of our investment managers, ESG equity analysts and central ESG Investment team. This comprehensive approach means we can build a richer, more holistic view of each company. It also means we can consistently evaluate one company against another.
This approach is all part of our responsible stewardship of our clients’ assets – helping us mitigate risks, unlock opportunities and enhance long-term returns.
-
Read our Research
Why should you care about Chinese onshore equities? How do you invest? Is investing in so-called ‘A-shares’ worth the risks? China’s Local Equity Market: ‘…How and Where and Who’, a companion piece to China’s Bond Market: ‘What and Why and When…’, seeks to answer these questions.
We look at what the A-share market is, who the players are and the factors that drive the market. We show how foreign investor access has improved over the years. We also examine the risks that demand an active investment strategy based on rigorous research.
-
For investors looking for a deeper understanding, we employ our proprietary analytical framework to generate a 10-year outlook for investment returns. We also dig deeper into the small but important improvements in corporate governance. These show how efforts to make this market more professional are bearing fruit.
Fund in focus
Exceptionally diversified solutions to allow investors to diversify risk and optimise investment opportunity.
Aberdeen Standard SICAV I - China A Share Equity Fund
More infoemailSign up to keep up to date
- Factsheets and product updates
- Fund manager research and commentary
- Market insight, long-term thinking and investment solutions
The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis, should not be taken as an indication or guarantee of any future performance analysis forecast or prediction.
The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI” Parties) expressly disclaims all warranties (including without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com).