After three years of zero-Covid, China is back. This year promises to be a good one for the domestic economy. However, we believe the recovery will differ from other countries' by being less commodity-intensive and coming with fewer positive spillovers to the West, says Erik Lueth, global emerging market economist at Legal & General Investment Management.
With China’s recent reopening re-igniting global investor appetite for domestic equities, China Asset Management Co Ltd (ChinaAMC) believes thematic exchange-traded funds (ETFs) offer an effective route to resilient returns.
Although developed markets are expected to outperform, the Asia Pacific region also holds appeal for many institutional investors, a 2023 investment outlook survey shows.
The Dutch pension manager expanded its partnership in the Chinese market in 2019. The latest available data shows the portfolio is growing and doing well.
Collaboration between policymakers and the investment community is crucial for the sustainability of sustainable investing, and this synergy will prove particularly useful for developing markets in Asia.