Asset Allocation Strategy
Emerging Markets and the China Regulatory Crackdown
Thu 19th August, 2021

In May 2020 our research spoke to a satellite holding in emerging market equities (EM) having the potential to add value for investors over the medium to longer-term. Following very strong performance from EM equities in the second half of 2020, the past 6 months have been more challenging, with a broadening regulatory crackdown impacting the Chinese equity market in particular.

Is the regulatory crackdown a warning of a structural shift in the attractiveness of Chinese equities, or is it just reflecting the reality of EM/China investing and therefore an opportunity to accumulate further exposure for investors with a multi-year time horizon?

We analyse the situation in China and put forward our current investment views, covering:

- What has been happening in China

- What China is trying to achieve

- Our view on whether China is still an attractive medium to longer-term investment destination

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Written by

David Cassidy, Head of Investment Strategy

David is one of Australia’s leading investment strategists.

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