Allianz Global Investors, one of the world’s leading active asset managers, announced today the appointment of Matt Christensen as Global Head of Sustainable and Impact Investing. In this role, he will accelerate the growth of Impact Investing as part of the company’s growing private markets platform; lead the continued integration of ESG factors across AllianzGI’s existing range of public markets products, including stewardship activities; and support the development of new SRI products.
China is on course to be the world’s largest economy by 2030, which could be the most transformative development in financial markets in the coming decade.
In our view it is the right time to get one step ahead of this opportunity – by investing actively with the right partner to help you navigate a changing market.
Click the button below to jump to our latest investment insights about China, and explore the rest of this page to learn more about this dynamic region.
5 principles for a successful China investment strategy
China represents a truly unique investment opportunity, but it's not without challenges. Based on our extensive experience investing in China, we've put a spotlight on five fundamental principles that may support a successful strategy.
Already the world’s second-largest economy, China is set to become the biggest global economy by 2030. Reforms are shifting its focus to high-value sectors such as robotics, biotech and tourism.
Given the scale of the opportunity, we think investors’ current allocations to China underrepresent the potential rewards – and we expect investors to increase their exposure steadily.
As more investors look to China, “buying the index” may not provide the right kind of access, since China is widely underrepresented in benchmark indices. An active, selective approach may provide better exposure.
China’s markets have been volatile, though their institutionalisation and transparency are improving. Yet it’s still an unfamiliar market, emphasising the need to invest with conviction – and the right partner.
Investing with conviction and the right partner
Allianz Global Investors has more than 25 years of experience investing in Chinese equities.
With our Shanghai office and strong presence throughout the region, we are well-positioned to conduct in-depth research, meet with management teams and understand the regional context.
Investment Intelligence, our regular podcast discussing all things investing, explores the implications of rising geopolitical tensions for investing in China.
Hear from our experts on China
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Did you know that
The % of the Chinese population living in urban areas has tripled to 60% since 1980
Source: World Bank
Did you know that
China exported USD 2.5tn of goods in 2019, making it the world’s largest exporter by value
Did you know that
Increasingly an innovator, China now accounts for one third of the world’s 5G patent filings
Source: IPlytics as at 03/2019
Did you know that
Post-Covid-19, China is accelerating new infrastructure such as 5G networks and data centres
Source: xinhuanet.com as at 05/03/2020
Did you know that
China has the highest number of “tech unicorns” globally
Source: Hurun Research Institute and Nikkei Asian Review as at 21/10/2019
Did you know that
In 2019, China surpassed the US as the top filer of international patent applications
Source: World Intellectual Property Organization, 2020
7 key facts investors need to know
Once largely out of reach to foreign investors, China’s stockmarkets have opened up, attracting USD 146 billion of investor capital in the last six years through the Stock Connect programme alone. China A‑shares have grown increasingly accessible, and they give investors more direct access to China’s compelling growth story.
Domestic retail investors in China dominate the market for A-shares and account for more than 80% of daily turnover. With the investment culture in China focused more on momentum and short-term trading, the stock turnover ratio of China A-shares is among the highest in the world. High levels of turnover generally make it easier for investors to buy and sell shares.
Source for chart (A-share turnover): World Federation of Exchanges as at 31/12/2019. Stock turnover ratio is calculated by total turnover divided by ending market capitalisation. Source for text (daily turnover): SSE, Wind, Bloomberg, Goldman Sachs Global Investment Research as at 12/2017.
China’s return to growth should help equities and corporate credit in North Asia
With its successful containment of Covid-19, China’s ongoing recovery is likely to benefit its most closely connected neighbours.
Growth in China set to outlast the pandemic and trade wars
Despite the impact of the coronavirus pandemic, and continuing tensions with the US, China remains on course to become the world’s largest economy by 2030. This could represent the coming decade’s most transformative development in global financial markets – and a major opportunity for investors.
China is positioned to lead Asia’s economic recovery from the coronavirus
The coronavirus pandemic applied a sudden brake to China’s growth story, as it did to most economies around the world. But there are signs that China could be ready to lead the way out of the downturn and resume its long-term growth trajectory.
There is no guarantee that actively managed investments will outperform the broader market. Foreign markets may be more volatile, less liquid, less transparent, and subject to less oversight, and values may fluctuate with currency exchange rates; these risks may be greater in emerging markets. Equities have tended to be volatile, and do not offer a fixed rate of return.
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[*Subject to change – depends on the content of the material which may mention certain investment instruments that involve particular risk]