Portfolio Manager Winnie Chwang assesses the growth avenues for China small companies.
As China seeks to achieve “Common Prosperity,” companies which are aligned with the latest policy guidance stand to gain.
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 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.