“Emerging markets offer opportunities in regions such as Asia, led by strong economic growth, domestic demand and favourable geopolitics.”
- The equity rally has moved to China and Emerging Markets, which have outperformed since Mid April.
- Supportive policy measures in China aimed at stabilizing the housing market came in earlier than expected.
- Emerging Markets equity remain relatively cheap compared to developed markets.
After a choppy start to the year, Chinese stocks rebounded strongly since mid April. This rally has been driven by multiple factors, including rising market interest for the Chinese technology sector and the new recently introduced support measures from Chinese policymakers aimed at reducing housing inventories and stimulating demand. While these measures may not be innovative and may have temporary effects, they have provided a positive surprise in terms of timing.
Emerging Markets are relatively cheap compared to other markets. In the search for opportunities, investors will have to assess all aspects of economic growth, domestic demand and geopolitics, collectively referred to as geoeconomics.
You can now read the full whitepaper at the link below
