What China’s Economy Means for Institutional Investors

Executive summary:

  • China's economy has disappointed most expectations over the past year.
  • China's need to rebalance from investment to consumption is coming when tensions with the U.S. are elevated. This could create continued volatility.
  • We believe China does have the levers to alleviate some key challenges.

On Nov. 14, Jonathan Woo, Senior Research Analyst at Russell Investments, based in the UK, moderated an online discussion on what China’s economy means for institutional investors.

Joining Woo were Alexander Cousley, CFA, investment strategist with Russell Investments based in Sydney, Australia, and John Malloy, co-head of emerging and frontier Markets at Redwheel.

Following are some highlights of their conversation, which lasted about 40 minutes. Periodic timestamps and indications of visual slides are provided.

Woo introduced the panelists and explained that the conversation would focus on whether China’s growth prospects are still in track. In the recent past, Woo said, investors felt China would eventually succeed as the world’s largest super economy. Fast forward to today, he said, and the Chinese economy is beset by a property slump, a consumption slowdown and geopolitically sensitive trade issues in the wake of the Russia-Ukraine crisis

With that, Woo informed the audience that the webinar would include discussion about China’s economy and how it has disappointed most expectations for 2023. Further, he said, the discussion would touch on China’s need to rebalance from investment to consumption. The webinar would end with the panelists offering long-term outlooks on China.

Woo started off with a discussion on economic climate.