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EXCLUSIVE: Worst Is Over For China's Property Sector, Economy – FountainCap
Amanda Cheesley
19 April 2024
Despite concerns over China’s slowing economy, and its real estate sector in particular, Steven Luk, CEO of Hong Kong’s potentially lead to more sustainable, albeit lower, growth going forward.” Nevertheless, Weyerer recognises that "many investors currently are more concerned about the numerous challenges and may consider tactically underweighting China – especially given its dominating weight in standard Asia and EM indexes." David Bailin, chief investment officer and global head of investments, at Citi Global Wealth also does not rule out a recovery in China. “Should policymakers provide substantial assistance to the real estate sector, implement incentives to boost domestic consumption and encourage more investment in productive assets, China has the wherewithal to return to a higher rate of growth. In addition, more consistent policies regarding the governance of their technology and other 'socially impactful' companies are necessary to restore investor confidence,” he said. See more here. China fund The fund aims to achieve long-term results for investors by investing in companies that will benefit from China’s transformation and long-term growth. It is a long-only equity fund, using a bottom-up stock-picking approach, backed by thorough research. Top holdings include: Chinese sportswear firm Anta Sports, which specialises in basketball and running shoes; Sungrow Power Supply; a specialist in the manufacture and sale of solar photovoltaic (PV) inverters; and Chinese oil and gas firm, Petrochina. Other holdings are Jiangsu Hengli Hydraulic, which manufactures and sells hydraulic components and systems, and Yum China Holdings, a Chinese fast food restaurant company. The firm is underweight in Chinese tech giant Tencent. The fund is authorised for sale in Austria, France, Germany, Luxembourg, Norway, Spain, Sweden, Switzerland, and the UK. MIFL is a management company approved by the Central Bank of Ireland to manage UCITS or undertakings for the collective investment in transferable securities, which are investment funds regulated at EU level, and non-UCITS funds.
The China Fund focuses on investing in Chinese equities. Luk believes that robotics, automation, healthcare and renewables will shape China’s future. With the country producing more than 70 per cent of all solar photovoltaic panels, half of the world’s leading electric vehicles and a third of its wind power, he has direct exposure to renewables, notably solar. Luk also likes consumer goods, such as sportswear, noting that the food and drinks sector continues to grow.