Matthews Asia

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.

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.

Trading ETFs efficiently can help reduce costs and minimize risk. Learn best practices from our capital markets team.

CIO Robert Horrocks, PhD, says well-managed companies, not inflation and interest-rate cycles, will determine long-term investment returns.

A challenging period for Japanese growth stocks may present a unique entry point for long-term investors.

Vietnam is a frontier market star.

Investors in China can positively influence the behavior of Chinese companies and generate attractive risk-adjusted returns in the long run.

Mexico was the best-performing Latin American market in 2021 and our recent trip reinforced the reasons to remain bullish.

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.

It might seem at first that everything is against emerging markets.

Despite gloomy news out of China, Andy Rothman explains why he remains optimistic about China’s road ahead.

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.

Portfolio Manager Winnie Chwang assesses the growth avenues for China small companies.

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?

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.

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.

Portfolio manager John Paul Lech and Senior Research Analyst Alex Zarechnak discuss the potential market ramifications of Russia’s invasion of Ukraine.

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’s default and the delisting of Didi Chuxing should be viewed as being part and parcel of the challenges of investing in China.

In our latest issue, Andy Rothman discusses how last year’s experiences can help us plan for China’s 2022 economic prospects.

In this issue of Sinology, Andy Rothman explains why China’s 2022 investment environment will be defined by two competing weather patterns.

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.

As China seeks to achieve “Common Prosperity,” companies which are aligned with the latest policy guidance stand to gain.

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.

In our latest Q&A, we explore China’s pledges, progress toward Carbon Neutrality and implication for investors.

Robert Horrocks, PhD, discusses how he navigates and invests in a challenging environment, especially in China amid recent regulatory actions.

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.

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.

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.

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.

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.

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?

Q&A with Kathlyn Collins: Understanding the context of the recent regulatory announcements through an ESG lens.

Going forward, we believe that the traditional international allocation and global emerging markets deserves a rethink.

CIO Robert Horrocks, PhD, discusses the short and longer-term prospects for Asia and EM in a rising inflationary environment.

Over the past few months, we’ve heard plenty about the rotation to value putting pressure on growth stocks.

This Fund has a focus on China’s small companies—could you explain the investment idea behind this? Why China? Why small cap?

As the economic recovery continues to broaden out, how do you see the emerging markets?

Have market disruptions changed the types of companies you seek to invest in?

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.

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.

In this issue of Sinology, we provide a macro perspective for thinking about whether an investor’s portfolio has enough exposure to China.

The region’s health care sector is setting a brisk pace for growth and innovation. Our team discusses the opportunity set.

CIO Robert Horrocks, reviews a topsy-turvy 2020 and shares the reasons for his relative optimism for Asia and the emerging markets in 2021.

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.

Corporate earnings are likely to be strong in 2021, reflecting strong consumer demand and resilient cash flows.

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.

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.

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.

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.

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.

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.

Within the broader Asia Pacific universe, Portfolio Managers Yu Zhang and Joyce Li see attractive total return potential among dividend paying stocks.

Equity price gains in Japan may be driven by innovation over the long term. Portfolio manager Shuntaro Takeuchi discusses the opportunity set.

Within the broader Asia Pacific universe, Portfolio Managers Yu Zhang and Joyce Li see attractive total return potential among dividend paying stocks.

Sinology explores how U.S.–China relations can develop under President-elect Biden administration in three key phases.

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.

Within emerging markets, we find companies at the forefront of important global developments, including the health care and technology sectors.

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.

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...

Equity price gains in Japan may be driven by innovation over the long term. Portfolio manager Shuntaro Takeuchi discusses the opportunity set.

Across emerging markets, growth in e-commerce accelerates as the pandemic reshapes consumers' shopping patterns.

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.

With the coronavirus largely under control in China, we have an opportunity to consider what the post-COVID investment environment there might look like.

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.

Across emerging markets, urban consumption provides ballast and stability to a number of sectors and industries.

Emerging markets are developing richer, more consumer-led economies as China expands its infrastructure investments and trade relationships.

Innovative companies are reshaping Asia's investment landscape, as older industries recede and newer business models take their place.

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.

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.

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 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 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.

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.

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's government is taking incremental steps toward re-opening its economy, starting by bringing production and manufacturing facilities back online.

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'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'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.

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.

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.

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.

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.

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.

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 best environment would be moderate U.S. growth, a sideways U.S. market and a weaker U.S. dollar.

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...

Asia goes into the global deceleration with already-lean companies and a valuation advantage.

Improvements in accessibility are expected to accelerate further inclusion in the near term.

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.

As China's economy continues its shift toward services and consumption, small and medium-sized businesses are accelerating this transformation.

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.

Chinese equities were flat in September. A-shares posted slight gains while small caps posted slight losses.

As Asia’s private sector uses capital and labor more efficiently, economic growth rises.

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

Investment opportunities arise amid trade-related market disruption.

China's ambitious infrastructure initiative points to the potential of global cooperation.

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.

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.

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.

Factors other than U.S.-China friction drive the region's progress.

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.

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.

Following U.S. President Donald Trump's recent Asia trip, Sinology explains why prospects seem brighter for an improved broader U.S.–China relationship.

Its economic leadership creates a potential opportunity that cannot be ignored.

Market updates from across the region.

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.

Primed for growth, Asia’s health care sector helps capture consumer spending in the region.

Structural advantages that point to fast long-term growth in Asia are getting short shrift.

Market updates from across the region.

With Jokowi appearing set to retain power, equity flows should improve and indications are positive for economic reforms as political uncertainty is dispelled.

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.

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.

China's A-shares are gaining a larger role in MSCI indices. Matthews Asia's portfolio strategy team offers its views.

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.

What investors should expect from upcoming elections in Thailand, Indonesia, India and the Philippines.

Focusing on the long term and on better-managed companies has been a tailwind for returns in Asia.

When considering the prospects for India's stock market, key factors of performance are the growth outlook and underlying valuations.

Matthews Asia Portfolio Strategist David Dali discusses the new drivers of growth in emerging markets.

Our January Sinology explains that China’s economy did not slow sharply in 4Q18. Growth rates of household consumption and private investment actually accelerated.

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.

In our 2019 Fixed Income Outlook, Matthews Asia's fixed income team discusses possible tailwinds for Asia bonds ahead.

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.

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.

Market Updates from across the region.

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.

Changes result in a major shift in sector weights across indices globally.

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?

Market updates from across the region.

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.

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.

Matthews Asia CIO Robert Horrocks says China's leadership on free trade is an important reason to invest in the growth of Asia.

Asia’s entrepreneurs have capital, customers and conviction. Learn about the opportunity for global investors.

Capturing a diverse range of business opportunities and return drivers, Asia’s small companies offer attractive opportunities for long-term growth.

Matthews Asia CIO Robert Horrocks says Asia's markets have rebounded because of reasonable valuations.

Turkey's crisis may offer investors the opportunity to build positions in ASEAN countries and India.

Dispute could be a setback for productivity, affecting consumers globally.

Matthews Asia CIO Robert Horrocks says markets may have overreacted in Asia to news of a trade war and tighter money.

Matthews Asia CIO Robert Horrocks says valuations are nowhere near as stretched in Asia as they are in the U.S.

Chinese equities have been soft and President Trump is threatening a trade war, but earnings and margins remain firm and China is still the world’s best consumer story.

With trade war rhetoric growing hotter, Presidents Trump and Xi still have time to head to the negotiating table.

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.

Matthews Asia CIO Robert Horrocks says worries about U.S. monetary policy are not without cause.

Matthews Asia Portfolio Manager Michael Oh says South Korea’s economy may benefit from closer ties to North Korea, but costs and risks remain.

Market updates from across the region.

Matthews Asia CIO Robert Horrocks says Asia’s political and economic environment looks strong for the region’s long-term growth prospects.

Market updates from across the region.

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.

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.

Matthews Asia CIO Robert Horrocks says current stock valuations favor Asia amid an increase in market volatility globally.

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?

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.

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.

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.

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?

What are the key factors behind changes in liquidity in Asia, and what does this mean for long-term investors in the region? In this issue, we offer a guide to considering such related issues with less trepidation. Asia Insight explores.

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.

Strong future growth is rooted in some basic dynamics in which Asia Pacific excels.

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?