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:
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.
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.