Matthews Asia
Opportunities and Challenges of Trump 2.0
Chief Investment Officer Sean Taylor considers the implications of a second Trump administration for emerging markets.
Less Stubborn
China’s leaders appear to be back on a pragmatic macro policy path, but more course corrections will be required to change the direction of the world’s second-largest economy. Beijing must continue to be less stubborn, and we will need to be patient.
Q3 2024 CIO Review and Outlook
Many emerging markets have delivered a robust performance this quarter amid a number of headwinds and we expect key geographies to build on that in the coming months.
The Stimulus Package
Portfolio Manager Andrew Mattock, CFA, assesses the key components of the growth measures announced by the central bank and financial regulators in terms of their potential impact on the economy and the Chinese equity market.
What the Fed’s Rate Cut Means for Emerging Markets
Chief Investment Officer Sean Taylor provides his insights on how the Fed’s 50 basis point-rate cut may affect emerging economies, particularly in Asia and Latin America, how it impacts portfolio allocations and the sectors he believes are poised for growth amid this shift.
The Fundamentals of Japan
Many investors understandably are wondering where Japan’s equity markets are heading. The market had a good year through June. After that it changed. The Bank of Japan's hawkishly delivered interest rate increase on July 31 preceded the release of weak U.S. economic data.
Latin America's Long-Term Potential
Portfolio Manager Jeremy Sutch, CFA, and Chief Investment Officer Sean Taylor assess the issues besetting the region’s key markets—from domestic challenges to geopolitical headwinds—as well as their structural strengths, and whether prospects may brighten with the onset of a U.S. rate-cutting cycle.
Our Thoughts on the Global Selloff
Portfolio Managers Shuntaro Takeuchi, Michael Oh, CFA, and Andrew Mattock, CFA, assess the reasons for the heightened volatility and sharp moves in global markets.
Stubborn
Andy Rothman provides four reasons why he’s stubbornly convinced that Xi Jinping will eventually overcome his stubbornness and make the changes necessary to put China back on track to reach its potential growth rate.
Exploring the Spectrum of Active ETFs
Taking a closer look at the different types of active ETFs is important for investors. While many active ETFs incorporate some dynamic investment elements, their management philosophies can differ significantly and that has implications for their performance, risk profile, and alignment with investors’ financial goals.
Q2 2024 CIO Review and Outlook
CIO Sean Taylor says the second half of the year looks positive for emerging markets but country selection as a risk control will be critical in what is proving to be a politically-charged period for equities.
Identifying Recovery Catalysts in China
As the performance of China’s equity markets remains uneven and unpredictable, portfolio manager Hardy Zhu and Chief Investment Officer Sean Taylor highlight the potential growth agents that could improve long-term investment returns.
India’s Election Shock
Portfolio Manager Peeyush Mittal says even as Narendra Modi looks set to remain as Prime Minister, India’s domestic growth agenda faces a pause until the political landscape takes shape following the country’s elections.
Market Viewpoint
David Dali, Head of Portfolio Strategy, provides his 12-month outlook for global equity markets.
Active Engagement and Regulatory Change in Asia Is Releasing Value for Investors
We share some of the highlights from the past year that led to significant improvements in environmental protection, corporate governance, and transparency.
Switch It Up and Pair Your ETF Trades
Learn how using a “switch” trading strategy can create efficiencies to improve overall execution cost and quality.
Three Minutes on Japan
Portfolio Manager Shuntaro Takeuchi gives his take on the outlook for investor returns in Japan’s equity markets.
Two China Questions
In this issue of Sinology, Andy Rothman offers his perspective on two key questions.
India Strategies for Maximizing Returns
India is a long-term structural investment story but it isn’t cheap. To get the most from India we believe investors should adopt a selective approach in order to stay aligned with the country’s long-term value creation while not being distracted or paying too much for shorter-term, lower-growth opportunities.
India’s Structural Growth Opportunity
India's economic journey over the last decade has been remarkable and it’s just getting started.
India’s Key Growth Sectors
India's economic landscape offers a tapestry of growth opportunities.
Q1 2024 CIO Review and Outlook
At the beginning of the year, we took the view that emerging markets in Asia as well as Japanese equities would perform well but that the first few months would be unsettled. That's largely how it has played out.
India: The Structural Growth Story and the Long-Term Investment Opportunity
India’s equity markets are being driven by fundamentals in the form of robust economic expansion which is leading to strong earnings growth. India is also, helpfully, in the draft of favorable geopolitical tailwinds. In this paper, we make the case for India.
Three Minutes on India
Portfolio Manager Peeyush Mittal, CFA, offers his views on the outlook for India, the coming elections and longer-term themes.
Market Viewpoint
David Dali, Head of Portfolio Strategy, provides his 12-month outlook for global equity markets.
China Numbers That Count
Andy Rothman reviews data points that offer insights into the coming quarters.
Discover Growth
Why we believe small companies present key opportunities to tap into the heart of innovation and expansion in emerging markets.
Emerging Japan
Kathlyn Collins, Head of Responsible Investment and Stewardship, says a renewed purpose among regulators and pressure from investors is yielding breakthroughs in the governance and the capital efficiency of Japan’s-listed companies.
Staying the Course: Matthews Asia Dividend
Our portfolio managers field some tough questions on Matthews Asia Dividend’s performance, its positioning and what they believe are its unique strengths for investors.
Staying the Course: Matthews Pacific Tiger
Our portfolio managers field some tough questions on Pacific Tiger’s performance, its positioning and what they believe are its unique strengths for investors.
Why Asia Matters
CIO designate Sean Taylor gives his take on what Asia has to offer global and emerging markets investors, from growth, to diversification, to innovation.
Market Viewpoint
David Dali, Head of Portfolio Strategy, provides his 12-month outlook for global equity markets.
Confidence
A China ‘Recovery’: How important is the loss of confidence within China itself?
The Hidden Dragon
Investing in China remains challenging but that doesn’t mean there aren’t opportunities. Portfolio manager Vivek Tanneeru and Head of Portfolio Strategy David Dali highlight one approach that potentially can deliver alpha generation today while positioning for a potential upturn tomorrow.
Investing in an Emerging World Order. Part 3
In the final part of our series on global supply chains, portfolio managers Inbok Song and Sherwood Zhang look at the companies that are reconfiguring their networks and portfolio manager Vivek Tanneeru gives his assessment on the investment opportunities.
Investing in an Emerging World Order. Part 2
In the second part of our series on global supply chains, portfolio managers Inbok Song and Peeyush Mittal examine the regions and countries that may benefit from industries and companies shifting operations.
Investing in an Emerging World Order. Part 1
In the first installment of our three-part series on global supply chains, Portfolio Managers Peeyush Mittal and Inbok Song discuss why and where trading networks and manufacturing hubs are changing and how it’s impacting the international investment landscape.
U.S. Executive Order on Investing in China
Andy Rothman provides his assessment of the Biden Administration’s executive order on certain investments in China.
Market Viewpoint
David Dali, Head of Portfolio Strategy, provides his 12-month outlook for global equity markets.
The Coming Collapse of China?
Is it vogue to be pessimistic about China’s economy? Andy Rothman explores.
The Sun is Rising
Portfolio manager Shuntaro Takeuchi says Japanese equities, for so long a market of false dawns, may now be stirring up investment opportunities that finally present Japan as a long-term growth market.
Postcard from India: Day at the Dump
India is making bold moves in ‘new energy’ and decarbonization and our recent trip reinforced our reasons to remain bullish.
Sinology On-the-Ground in China
Andy Rothman provides a first-hand perspective from his first trip to Shanghai and Beijing since the start of COVID in 2019.
What Changed with the Pandemic (And What Didn’t)
Portfolio Manager Alex Zarechnak identifies six key themes from the COVID years—some new, some familiar—to help anchor investors in today’s emerging markets.
Macro Tailwinds for Emerging Markets
David Dali, Head of Portfolio Strategy, provides his 12-month outlook for global equity markets.
Three Extraordinary Years in Emerging Markets. Part 3
Portfolio manager John Paul Lech explores the defining changes of the last three years. Here he explains how he is navigating the new era of rising interest rates and financial tightening.
Three Extraordinary Years in Emerging Markets. Part 2
Portfolio Manager John Paul Lech explores the defining changes of the last three years and how they have informed his approach to the years ahead.
Three Extraordinary Years in Emerging Markets. Part 1
Portfolio Manager John Paul Lech explores the defining changes of the last three years and how they have informed his approach to the years ahead.
China’s Consumers Get Their Mojo Back
China’s economy has turned the corner, and is on a path towards a gradual, domestic demand-driven recovery. Andy Rothman outlines the reasons why China’s recovery is likely to be sustainable.
Sinology: Opportunity and Risk
China’s economy is in the early stages of a gradual, consumer-led recovery. In this issue of Sinology, Andy Rothman outlines why China’s opportunities outweigh risks.
India’s Balancing Act
Portfolio manager Peeyush Mittal and research analyst Swagato Ghosh say India has a fiscal playbook to chart a path of stability and growth.
Add Emerging Market Strength in Global Weakness
Head of Portfolio Strategy David Dali explains why it’s an opportune time to add emerging-market exposure.
The Value of Women Across the Board
More women in senior roles will support the long-term success and sustainability of emerging markets.
The End of Zero-COVID and the Start of China’s Economic Recovery
Andy Rothman explains the three reasons why he’s now bullish on China after being cautiously optimistic.
2023 Outlook: The Economic Prospects for Asia and Emerging Markets
On this webcast, experts from the Matthews Asia investment team will share their perspectives on where the global economy is headed and why now may be an opportune time to invest.
Open for Business
On his first visit to Japan since the pandemic, portfolio manager Shuntaro Takeuchi found new opportunities as well as familiar ones intact.
Five Reasons Why Emerging Markets Are Investable Today
David Dali, head of portfolio strategy, explains how emerging markets can give investors ballast to navigate macro headwinds and position portfolios for growth.
Looking Up
Vivek Tanneeru, portfolio manager, sees structural and cyclical tailwinds converging for emerging markets equities.
On the Path to Pragmatism
Xi’s move to ease China’s COVID policy should reduce obstacles to normal life in the country and set the stage for a gradual economic recovery.
The After-Party
Now that the Party Congress is over, Xi Jinping has one big decision to make. Sinology explores.
Engines of EM Growth
Portfolio Manager John Paul Lech explains why investors in emerging markets should go upstream in order to leverage the long-term power of the EV sector.
Uncapped Innovation
Portfolio Manager Michael Oh, CFA, says attractively valued companies are growing in Asia unfettered by inflationary headwinds.
Mind the Reality Gaps
CIO Robert Horrocks, PhD, says in order to reconcile assumptions on inflation with what might actually transpire, investors need to look through a wider lens and be prepared for a future that may not look too different from the past.
Don’t Judge an Emerging Markets Strategy by Its Name
Emerging markets strategies may offer differentiated exposure for investors concerned about a slowdown in the developed world but it’s crucial that investors look at the underlying exposures of their strategy as investment approaches to emerging markets can differ significantly.
ETF Trading Tactics
Trading ETFs efficiently can help reduce costs and minimize risk. Learn best practices from our capital markets team.
Q2 2022 CIO Review and Outlook
CIO Robert Horrocks, PhD, says well-managed companies, not inflation and interest-rate cycles, will determine long-term investment returns.
Why Japan is Ripe for Investment
A challenging period for Japanese growth stocks may present a unique entry point for long-term investors.
How to Invest in China Responsibly
Investors in China can positively influence the behavior of Chinese companies and generate attractive risk-adjusted returns in the long run.
Closer Look: Postcard from Mexico
Mexico was the best-performing Latin American market in 2021 and our recent trip reinforced the reasons to remain bullish.
Elevate Your Portfolio
John Paul Lech, Lead Manager of the Matthews Emerging Markets Equity Fund, explains the potential value that unique real estate equities can offer emerging market-growth portfolios.
Q1 2022 CIO Review and Outlook
It might seem at first that everything is against emerging markets.
China’s Road to Pragmatism
Despite gloomy news out of China, Andy Rothman explains why he remains optimistic about China’s road ahead.
Trading Places
CIO Robert Horrocks, PhD, examines the ramifications of Russia’s invasion of Ukraine on China’s trade and economic strategy and the implications the conflict has for Asia’s development and markets.
China’s Little Giants
Portfolio Manager Winnie Chwang assesses the growth avenues for China small companies.
Investing in Uncertain Times: An Emerging Markets Perspective
The halt of Russian equity markets, the prospect of higher U.S. inflation and rising interest rates are all contributing to uncertainty in emerging markets. How should investors navigate these headwinds and what could the impact be to markets in Asia, Europe, and Latin America?
Russia, Ukraine and China’s Western Ties
Andy Rothman, Matthews Asia Investment Strategist, and Dr. Bobo Lo, independent analyst and non-resident Fellow with the Lowy Institute, discuss how the Russian invasion of Ukraine may affect China’s relationship with the U.S. and Europe.
The Return of Japan
Portfolio Manager Shuntaro Takeuchi explains how rising inflation and volatile markets may cast Japan as an investment haven, with a breadth of hidden value available to be tapped.
Russia Crisis
Portfolio manager John Paul Lech and Senior Research Analyst Alex Zarechnak discuss the potential market ramifications of Russia’s invasion of Ukraine.
Substance Always Wins Over Style
CIO Robert Horrocks, PhD, explains how inflation has brought with it aggressive shifts in investment themes but ultimately it’s the attributes of companies that determine portfolio returns.
Evergrande, Didi and the Bigger China Story
Evergrande’s default and the delisting of Didi Chuxing should be viewed as being part and parcel of the challenges of investing in China.
CIO Outlook—Buckling Up for 2022
CIO Robert Horrocks, PhD, sees fascinating and surprising investment opportunities arising in the emerging markets and China next year. Fed actions to manage inflation and the ongoing challenges of the pandemic will be important factors but the performance of markets may ultimately depend on the success of well-managed companies in key sectors.
China Small Companies: Positioning for China's Policy Tailwinds
As China seeks to achieve “Common Prosperity,” companies which are aligned with the latest policy guidance stand to gain.
Beyond China: Opportunities in Asian and Emerging Markets in 2022
Unexpected regulatory actions in China, concerns over Evergrande’s debt restructuring and the lingering effects of COVID are just a few reasons for the volatile year in Asian markets. While growth in most of Asia and emerging markets dipped this year, there are reasons for optimism in 2022. Even with moderate growth projections, the region remains resilient and is still expected to lead the global recovery and exceed those of advanced economies.
China, Climate and COP26
In our latest Q&A, we explore China’s pledges, progress toward Carbon Neutrality and implication for investors.
Third Quarter 2021 CIO Review and Outlook
Robert Horrocks, PhD, discusses how he navigates and invests in a challenging environment, especially in China amid recent regulatory actions.
What Is Xi Jinping Thinking?
In this issue of Sinology, we explain why it is unlikely that the recent regulatory crackdown is Chinese Party chief Xi Jinping’s attempt to roll back China’s private sector.
Evergrande - Too Big to Fail?
The recent issues with China Evergrande Group have raised concerns over the broader health of China’s real estate market, the potential risk to its financial system and, more broadly, whether this could trigger a global financial problem. In our latest Q&A, Portfolio Manager Teresa Kong, CFA and Investment Strategist Andy Rothman provide their views and insights.
Why EM Still Fits in Your Portfolio
Emerging markets have evolved over the last few decades. Today, Asia is the core of growth, rising consumption and innovation within emerging markets, and world class industry leaders in innovation have changed the game of investing.
What’s on the Horizon for India’s Markets?
India’s second COVID wave subsided in June and continues to remain at the lower level and Indian equities were a bright spot for the region, significantly outperforming Asia and broader emerging markets in August.
Japan Elections and Market Update
On September 3, 2021, Prime Minister Yoshihide Suga announced his decision to not run in the upcoming ruling Liberal Democratic Party leadership race later this month. Portfolio Manager Shuntaro Takeuchi provides his thoughts on the current political environment and outlook for Japanese equities.
Fixed Income Market Update
Markets now know that the taper can be divorced from interest rate hikes. But for how long? What are your expectations on the timing of tapering?
China’s Regulatory Announcements Part III
Q&A with Kathlyn Collins: Understanding the context of the recent regulatory announcements through an ESG lens.
Optimizing International Allocations with Asia
Going forward, we believe that the traditional international allocation and global emerging markets deserves a rethink.
Market Insights from Portfolio Manager Winnie Chwang
This Fund has a focus on China’s small companies—could you explain the investment idea behind this? Why China? Why small cap?
Emerging Markets Equities Poised for Strong Earnings Rebound
As the economic recovery continues to broaden out, how do you see the emerging markets?
Amid Reopening, Quality Is Key
Have market disruptions changed the types of companies you seek to invest in?
Matthews Emerging Markets Small Companies Fund
We believe Asia is the core of growth and innovation within emerging markets, and companies domiciled in Asia comprise over 75% of the benchmark universe.
Is This the Real Life? Is This Just Fantasy?
China’s first quarter macro results are a mix of fantasy and real life, and distinguishing between the two are important for understanding the sustainability of the post-pandemic economic recovery.
Why China? A Macro Perspective
In this issue of Sinology, we provide a macro perspective for thinking about whether an investor’s portfolio has enough exposure to China.
Asia’s Health Care Sector Accelerates
The region’s health care sector is setting a brisk pace for growth and innovation. Our team discusses the opportunity set.
Q4 2020 CIO Review & Outlook
CIO Robert Horrocks, reviews a topsy-turvy 2020 and shares the reasons for his relative optimism for Asia and the emerging markets in 2021.
Still Resilient
Despite a pandemic, tariffs and superpower political tensions, the resilience of the Chinese economy was clear in 2020. In this issue of Sinology, we highlight five macro trends from 2020 that investors should watch this year.
Asia’s Corporate Earnings May Surprise on the Upside
Corporate earnings are likely to be strong in 2021, reflecting strong consumer demand and resilient cash flows.
Impact of the U.S. Ban on Named Chinese Securities
On January 11, 2021, the Executive Order 13959 (“E.O.”) issued by Donald Trump designed to protect U.S. investors from financing Communist Chinese Military Companies will go into effect. In this Q&A, Matthews Asia addresses key questions on its potential impact for investors.
Corporate Emerging Market Debt Poised to Shine in 2021
A nascent global recovery presents both risks and opportunities for fixed income investors. Portfolio Manager Teresa Kong, CFA, discusses why China dominates the universe for EM debt and why Asia may outperform the rest of EM for the foreseeable future.
Why Companies Override Countries When Building Portfolios
Investors frequently ask us for opinions on specific countries within emerging markets. Depending on what’s in the headlines, the country might be China, India, Thailand or Mexico. Conversations that start top-down and focus on country allocation include many natural questions for those considering emerging markets.
2021 Outlook: Can Asian Equities Lead the Way to a Global Recovery?
As an unusually extraordinary year comes to a close, investors may still have many lingering questions about where the global economy may be headed. Even as the world continues to fight the pandemic, there is reason for optimism in 2021. The strength of Asia’s economies—and China in particular—are recovering and are well-positioned to set the stage for future growth.
CIO Outlook: Tailwinds for Emerging Markets
Tailwinds for emerging markets include strong potential for earnings recovery, as well as a weaker U.S. dollar and reasonable equity valuations. Chief Investment Officer Robert Horrocks, PhD, considers the investment landscape in his annual review and outlook.
When Risk-Free is Risky, Asia May Provide a Bright Spot for Fixed Income Investors
For global fixed income investors, diversification is key. In our latest Q&A, Portfolio Manager Teresa Kong, CFA, discusses where she's finding opportunities across Asia today.
As Markets Rebound, Dividend Stocks Capture Gains While Buffering Volatility
Within the broader Asia Pacific universe, Portfolio Managers Yu Zhang and Joyce Li see attractive total return potential among dividend paying stocks.
Japan's Markets Today
Equity price gains in Japan may be driven by innovation over the long term. Portfolio manager Shuntaro Takeuchi discusses the opportunity set.
As Markets Rebound, Dividend Stocks Capture Gains While Buffering Volatility
Within the broader Asia Pacific universe, Portfolio Managers Yu Zhang and Joyce Li see attractive total return potential among dividend paying stocks.
Biden & China: Building Back Better?
Sinology explores how U.S.–China relations can develop under President-elect Biden administration in three key phases.
Smaller Families, Bigger Budgets
At dinner tables throughout emerging markets, middle-class families tuck into comfort food, share details about their day and toast each other's successes. Languages and cuisines may differ, but many elements of everyday life are often quite similar.
Adaptable Companies in Emerging Markets
Within emerging markets, we find companies at the forefront of important global developments, including the health care and technology sectors.
2020: A COVID Quarantine Odyssey
China Macro Analyst Julia Zhu returned to Mainland China in August to visit her parents, giving her a first-hand look at one aspect of the incredibly intensive program for controlling the coronavirus.
ESG's Early Adopters
Investors often think of emerging markets as taking cues from their developed counterparts—for example, by aiming to boost consumption and to achieve productivity gains. It may come as a surprise that some emerging economies have made an earlier start in adopting environmental, social and governance...
Japan's Markets Today
Equity price gains in Japan may be driven by innovation over the long term. Portfolio manager Shuntaro Takeuchi discusses the opportunity set.
E-commerce Sizzles
Across emerging markets, growth in e-commerce accelerates as the pandemic reshapes consumers' shopping patterns.
Q&A with Teresa Kong
In this short Q&A, Teresa Kong, Portfolio Manager, provides her insights on the economic impact of the coronavirus and where she sees risks and opportunities, and why the current prices could represent a once in a decade opportunity to buy Asia high yield.
China After COVID
With the coronavirus largely under control in China, we have an opportunity to consider what the post-COVID investment environment there might look like.
Matthews Pacific Tiger Strategy Fall Outlook: Entrepreneurial Companies Capture Growth in Asia
Amid a global pandemic and continued U.S.-China trade tensions, quality-growth companies remain strong performers. Portfolio managers Sharat Shroff, CFA, and Inbok Song discuss the opportunity set for growth investors.
China’s Investment in Developing Economies
Emerging markets are developing richer, more consumer-led economies as China expands its infrastructure investments and trade relationships.
Innovation in Action
Innovative companies are reshaping Asia's investment landscape, as older industries recede and newer business models take their place.
Lessons From China
What are the lessons that can be learned from observing the Chinese economy and U.S.–China relations? Sinology explores the takeaways from five topics including China’s approach to controlling COVID-19, its economic recovery and Washington’s misguided approach towards China.
Measuring Intangibles for Asia's Growth Companies
Portfolio managers Taizo Ishida and Michael Oh, CFA, explore the growth drivers for Asia's new economy sectors, including how to measure and assign potential future value of intangible assets.
Japan Election and Macro Update
As Japan considers Prime Minister Abe's successor, fiscal and monetary policy appears to be remaining stable and Japanese corporate profits are climbing back from COVID-19 impact, at least for now.
Four China Trends
Four important trends are continuing in China: COVD-19 remains largely under control; the economy is in a V-shaped, post-COVID recovery, led by strong domestic demand; U.S.-China relations are tense and likely to worsen; but the political problems between Washington and Beijing should continue to have little impact on China's economy or its investment environment.
China's Economic Resilience
China's V-shaped economic recovery continued for a fourth consecutive month in June, led by strong domestic demand. If COVID-19 remains under control, China can remain the world's best consumer story.
Asia's Information Technology Leap
Software and hardware companies are supporting new forms of consumption in Asia, such as the growing popularity of online games. Portfolio managers Sharat Shroff and Inbok Song discuss the opportunity set for long-term investors.
A Closer Look at China's Economic Resilience
As the global economy slows, we remain optimistic about the long-term growth potential of Chinese equities. From a public health perspective, China has flattened its curve of new cases COVID-19. Fiscal and monetary stimulus, while incremental, remains supportive. Interest rates remain positive, giving China's central bank room to maneuver.
India Update: COVID-19 Response and Economic Outlook
India's government is taking incremental steps toward re-opening its economy, starting by bringing production and manufacturing facilities back online.
U.S. and China: A World of Two Asset Classes?
As we look at emerging from the coronavirus pandemic, it is now becoming clear that there may be some long-lasting impacts to the world that will affect politics, economics and investments. Are we heading towards a world of two asset classes: the U.S. and China?
China Is Bouncing Back, but Can We Trust Its Numbers?
China's economy looks to be well on its way to recovering from the coronavirus-imposed lockdown with consumer spending, manufacturing and investment bouncing back. But can we trust China's macro numbers?
China on the Road to Recovery
China's economy was the first to suffer the consequences of fighting the novel coronavirus and is the first on the road to recovery. After an initial cover-up and more than 3,000 deaths, China appears to have brought COVID-19 under control and laid the foundation for a gradual economic recovery, although normal activity levels may not be reached until 2021.
Demographics Drive Japan's Innovation and Growth
Japanese growth stocks, along with global equities, experienced considerable volatility in the first quarter. Uncertainty around the coronavirus, slowdowns in global manufacturing activity and worries about dampened consumer activity related to Japan's consumption tax each impacted Japan's markets.
Is China a Safe Haven?
After an initial cover-up and more than 3,000 deaths, China appears to have brought COVID-19 under control, just as the spread of the coronavirus is accelerating across the U.S. and Europe. With China's domestic-demand driven economy set to rebound and mainland investors avoiding the panic that has smacked western markets, its economy could put a floor under global growth and offer a safe haven to investors.
Coronavirus and Falling Oil Prices Roil Markets; Long-Term Perspective Is Key
Long-term perspective is key as coronavirus and falling oil prices roil markets. Members of the Matthews Asia investment team share their insights and outlook amid volatile markets.
Coronavirus Q&A
I've been fielding many questions from investors about the new coronavirus, COVID-19, and would like to share my answers with you in this issue of Sinology.
Wuhan Coronavirus
Matthews Asia CIO Robert Horrocks, PhD, and Investment Strategist Andy Rothman offer their perspectives on the Coronavirus and its possible impact on China's governance and economy.
A Year of Living Less Dangerously
The publication this week of the U.S. — China trade deal and the final macro numbers for 2019 should set the stage for healthy economic performance and stronger market sentiment in China in 2020, but the risk of a return to tense relations between Washington and Beijing looms over 2021 and beyond.
The 2020 Outlook for Southeast Asia
The best environment would be moderate U.S. growth, a sideways U.S. market and a weaker U.S. dollar.
A Disappointing Deal, and a Healthy Economy
President Trump called it “amazing,” and U.S. Trade Representative Lighthizer said the China deal is “remarkable.” In my view, however, it is merely the best trade deal in the last 36 months of Chinese history, and it falls well short of two key objectives. Because the deal sets highly unrealistic goals for U.S. exports to China...
Troubled Times Can Give Birth to Opportunity
Asia goes into the global deceleration with already-lean companies and a valuation advantage.
What's Next for China A-Shares Inclusion in MSCI Indices
Improvements in accessibility are expected to accelerate further inclusion in the near term.
The Case for Greater China Exposure in Global Equity Portfolios
China has come to the forefront of investors’ minds, and has become a larger portion of global indices over the past years while dominating global headlines. We believe investors’ slow reaction to the rise of China as a global economic power creates an opportunity for investors who are willing to lead the pack.
Completing Your China Exposure: Small Companies Help Capture China's New Growth Drivers
As China's economy continues its shift toward services and consumption, small and medium-sized businesses are accelerating this transformation.
Stepping Back From the Brink?
A trade deal is expected when Presidents Trump and Xi meet in November, but even if the talks fail, Sinology explains why China can mitigate the impact and maintain the world’s best consumer story.
Country Updates for the month ending September 2019
Chinese equities were flat in September. A-shares posted slight gains while small caps posted slight losses.
Asia's Productivity Boom
As Asia’s private sector uses capital and labor more efficiently, economic growth rises.
The Case for Greater China Exposure in Your Portfolio
While global investors continue to feel the repercussions of U.S–China trade tensions, China boasts a vibrant, entrepreneurial economy, creating opportunities for investors with a long-term view. Despite market volatility, China remains the world’s best consumer story, represents the world’s second largest economy and has been the key driver of global economic growth for a decade.
Please join Matthews Asia Portfolio Strategist Jeremy Murden along with Portfolio Managers Winnie Chwang and S. Joyce Li, CFA, for an interactive discussion on:
- Why China remains a global growth engine
- Investment opportunities in China to keep an eye on
- Opportunities and risks in China’s A-share market
- Reasons to increase your allocation to China
- The economic outlook for China in the months ahead
The Promise of 'Belt and Road'
China's ambitious infrastructure initiative points to the potential of global cooperation.
E-Commerce Surges in Southeast Asia
In Southeast Asia, a collective market of over 650 million urbanizing and upwardly mobile people have seen many companies poised to prosper in the burgeoning e-commerce sector and many have set their sights to scale in Indonesia.
Decoding Hong Kong's Protests
Protests in Hong Kong create a political balancing act for China. With the world watching, a patient approach may be in China's best interest.
Management, Not Manipulation
We believe China is managing, not manipulating, its currency. The country's central bank aims to maintain a stable exchange rate amid trade-related volatility.
Trade War Won't Stop Asia's Growth
Factors other than U.S.-China friction drive the region's progress.
China's "Currency Manipulation"—A Sign of Panic or a Cunning Plan?
Over the past several months, there has been hype about the prospect of the Chinese renminbi (RMB) weakening past 7 per U.S. dollar, despite no evidence that 7 is a magical number. China's central bank, People's Bank of China (PBOC), had denied that it was focused on defending 7, and the IMF said it wasn't significant.
Boring!
Chinese government economists in Beijing have indicated that, while they are prepared to intervene with stimulus if current conditions deteriorate, investors should not anticipate material changes to monetary and fiscal policy. Sinology takes a look at the latest China economic data.
Has Trump Re-set U.S.-China Relations?
Following U.S. President Donald Trump's recent Asia trip, Sinology explains why prospects seem brighter for an improved broader U.S.–China relationship.
What China's Greater Openness Means for Investors
Its economic leadership creates a potential opportunity that cannot be ignored.
Our Latest Views on the U.S. - China Trade Dispute
U.S. - China trade concerns continue to weigh on global markets. Matthews Asia offers its perspective on how the dispute affects the long-term investment landscape.
Health Care's Rich, Diverse Landscape
Primed for growth, Asia’s health care sector helps capture consumer spending in the region.
Market Reaction to Tariffs Misses Larger Opportunity in Asia
Structural advantages that point to fast long-term growth in Asia are getting short shrift.
Asia Credit Spreads Look Rewarding
We recently sat down with Matthews Asia Portfolio Managers Teresa Kong and Satya Patel to discuss the appeal of Asia corporate bonds for bond investors seeking global diversification.
Quarterly Review of Asia's Markets
China and Asia are once again at the forefront of many investors' minds. Investors have taken notice of a potential resolution to the trade dispute with the U.S., the pause in Federal Reserve tightening and the curtailing of the U.S. dollar's rally, along with headlines suggesting China is looking to stimulate growth.
What Investors Should Know About MSCI's Rising China A-Shares Inclusion
China's A-shares are gaining a larger role in MSCI indices. Matthews Asia's portfolio strategy team offers its views.
China's Debt Problem
Sinology explains that the key to understanding China’s debt problem is that it is the result of state banks lending to state firms at the direction of the state, so there is no mark-to-market pressure.
Four Key Elections in Asia to Watch
What investors should expect from upcoming elections in Thailand, Indonesia, India and the Philippines.
Asia's Markets Can Do Without the Drama
Focusing on the long term and on better-managed companies has been a tailwind for returns in Asia.
Assessing Valuations in India's Stock Market
When considering the prospects for India's stock market, key factors of performance are the growth outlook and underlying valuations.
Six Sources of Alpha in Emerging Markets
Matthews Asia Portfolio Strategist David Dali discusses the new drivers of growth in emerging markets.
Has the China Collapse Finally Arrived?
Our January Sinology explains that China’s economy did not slow sharply in 4Q18. Growth rates of household consumption and private investment actually accelerated.
Will Vietnam and Thailand Benefit From U.S.-China Trade War?
In Southeast Asia, which countries have been the fastest to benefit from a shift in supply change and manufacturing, as costs in China have risen? Our regional expert takes a look.
Clouds Starting to Disperse for Asia Fixed Income
In our 2019 Fixed Income Outlook, Matthews Asia's fixed income team discusses possible tailwinds for Asia bonds ahead.
Sometimes It's Wiser Not to Follow the Herd
Conventional wisdom is always right—until it isn't. The question is: When is it right to disagree? The investment herd is thinking: Trade wars, tight money, fractious politics and a falling stock market in the U.S. Banking systems in distress in Europe and the splitting of the EU.
China Equities 2019: Fundamentals Sound, Sentiment Is Wild Card
Amid macro concerns including trade conflicts and fears of slowing growth, Chinese equities were highly volatile in 2018. The declines in equity prices seem to have been driven largely by sentiment. Two decades of investing in China has taught me to look past sentiment and take a closer look at what's happening on the ground.
Value Emerges in Asia's Markets as Panic Sets In
I have been waiting for the first signs of real panic in Asia's bear market. First, there was the question of why India had been so defensive, with its current account deficit, high structural inflation, strained banking system, difficult government finances and high valuations.
GICS Sector Changes and Implications for Investors
Changes result in a major shift in sector weights across indices globally.
The Great China Disconnect
Our October Sinology explores the disconnect between weak market performance in China, and strong macro conditions and corporate earnings. How likely is this to narrow?
India and Southeast Asia: Country by Country Outlook
India's growth rate accelerated to 8.2% in the second quarter of 2018 as the shocks from demonetization and the imposition of the Goods and Services Tax (GST) wore off, supported by inventory restocking and a low base of comparison. The principal drivers of growth were government and private spending.
China Equity Markets: Pockets of Opportunities, Fundamental Research Is Key
Following a substantial run-up in 2017, China's stock markets experienced notable volatility in recent quarters. The MSCI China Index was down roughly -9% year to date measured in U.S. dollars as of September 30, 2018, while China's mainland, domestic A-shares were down nearly -20% measured in U.S. dollars for the same period.
China Takes Leading Role on Global Trade
Matthews Asia CIO Robert Horrocks says China's leadership on free trade is an important reason to invest in the growth of Asia.
5 Trends Helping Asia’s Entrepreneurs Thrive
Asia’s entrepreneurs have capital, customers and conviction. Learn about the opportunity for global investors.
Asia’s Small Companies Go Big
Capturing a diverse range of business opportunities and return drivers, Asia’s small companies offer attractive opportunities for long-term growth.
Amid Volatility, Positive Signs Emerge for Asia's Markets
Matthews Asia CIO Robert Horrocks says Asia's markets have rebounded because of reasonable valuations.
Are Turkey's Troubles Contagious?
Turkey's crisis may offer investors the opportunity to build positions in ASEAN countries and India.
The Likely Trade War Fallout in Asia
Dispute could be a setback for productivity, affecting consumers globally.
What's Driving the Downturn in Asia's Markets?
Matthews Asia CIO Robert Horrocks says markets may have overreacted in Asia to news of a trade war and tighter money.
Asia's Stock Valuations Open Opportunities
Matthews Asia CIO Robert Horrocks says valuations are nowhere near as stretched in Asia as they are in the U.S.
Our Views on the U.S.-China Trade Dispute
U.S.-China trade concerns have been weighing on investors. Matthews Asia examines the strength of China's underlying fundamentals, the rate of its middle class expansion and domestic consumption.
Global Markets Fret Over What the Fed Will Do Next
Matthews Asia CIO Robert Horrocks says worries about U.S. monetary policy are not without cause.
New Chapter for Korea Peninsula After U.S.-North Korea Summit
Matthews Asia Portfolio Manager Michael Oh says South Korea’s economy may benefit from closer ties to North Korea, but costs and risks remain.
Asia's Stability Makes It Poised for Growth
Matthews Asia CIO Robert Horrocks says Asia’s political and economic environment looks strong for the region’s long-term growth prospects.
What a Trade War Means for Asian Bonds
Media reports have been focusing on a “trade war” following President Donald Trump’s decision to impose tariffs on up to US$60 billion in Chinese imports, targeting technology products.
Investing During a Different Rate Cycle
Amid a rise in market volatility around the world, the fundamentals for Asia equities look fairly healthy. Investors should not ignore, however, the interconnectedness of today’s global markets.
Q&A: Market Volatility Opens Opportunities in Asia
Matthews Asia CIO Robert Horrocks says current stock valuations favor Asia amid an increase in market volatility globally.
Uncovering Opportunities in Asia's Tech Sector
Shares of some large-capitalization tech companies in Asia have delivered strong performance so far this year, driving up the tech sector weighting relative to the broader market. Do these types of stocks represent the best opportunities in Asia’s tech sector right now?
2017 Third Quarter Review
Matthews Asia ended 3Q 2017 with US$31.4 billion in assets across Asia investment strategies. The investment team includes 45 members, with portfolio managers and analysts aligned by strategy.
China's A-Share Market: More Investable than Skeptics Think
We explore the reasons we believe the A-share market has become more investable, including improved corporate governance and better disclosures, the ability of companies to create value for investors, company discipline around capital allocation and the fading role of state ownership in certain sectors.
China Surprises
The Chinese economy delivered many surprises in the first half of the year, disappointing (yet again) the pundits who predicted a hard landing. Macroeconomic data published over the weekend is consistent with a healthy economy, driven by impressive wage growth and consumer spending, and supported by strong earnings growth.
Focus on Korea
South Korea’s young democracy has successfully withstood months of political turmoil, which concluded recently with the election of President Moon Jae-in as its new leader. What can investors expect next?
CIO Annual Letter
The last few days of 2016 have receded amidst continued pain for Asia's markets. Matthews Asia CIO Robert Horrocks, PhD, reflects on the year that began with a rally in Asia's equity and fixed income markets, but it ended in a slump.
CIO Outlook
Strong future growth is rooted in some basic dynamics in which Asia Pacific excels.
Brexit and Trump, a Global Trend?
Is the election of Donald Trump the latest example, following on from the Brexit vote and the success of Bernie Sanders and non-mainstream candidates in Europe, of a global trend in demagoguery and isolationism that will sweep all in its path, including the economies of Asia?