China also now leads globally in solar, batteries, and electric vehicles. While China still relies on fossil fuels, it produces more than 80 per cent of all solar photovoltaic panels, half of the world’s leading electric vehicles and a third of its wind power. 

Varum Laijawalla, co-portfolio manager of emerging market equities, said emerging market equities are up 35 per cent this year, compared with 20 per cent for developed markets, with artificial intelligence driving returns across markets. “Asia’s dominance in the semiconductor supply chain is powering AI,” Laijawalla said. “The dollar has also weakened which benefits emerging market equities.” The firm predicts that total returns in sterling for equities will reach 1.9 per cent in the US, 4.2 per cent in Europe ex-UK, 4.5 per cent in the UK and 5.2 per cent in emerging markets. 

A number of wealth managers have come out recently in favour of emerging markets and Asia this year, for instance Aberdeen Investments, Paris-based Amundi, Carmignac and Indosuez, as well as GIB Asset Management and Franklin Templeton. See more here and here.