Unlock China’s true potential

The onshore equity market of the world’s second largest economy is deep and liquid. It is also dominated by sentiment-driven retail investors, making it an ideal hunting ground for active, long-term investors.

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 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.

Our ESG approach to equity investing

We believe that ESG factors may be 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.

Read more about sustainable investing

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