Theme – China and Equity Investments in the light of challenging geo-politics and economics
Chinese equities have in recent years generated significant returns for both Chinese and international investors. These returns have, in particular, been driven by sectors that have benefitted from exposure to the growing middle class in China, limited state regulation and access to cheap debt, such as technology, e-commerce, finance and property. The stable political situation in China and the Chinese government’s target of attracting external capital have also made many international investors more comfortable with a high allocation for Chinese equities.
However, there are indications that (1) China is adopting a more aggressive geo-political approach towards Hong Kong, Taiwan, USA and more, (2) President Xi is open to force regulation across sectors that is based on a communist/socialist approach to market forces, (3) debt with non-SOE, non-financial companies has reached a level that will result in more defaults and bankruptcies among listed companies and (4) the Chinese government seems to have lost interest in attracting external capital and international investors.
We have therefore invited Christopher Granville, Managing Director, EMEA and Global Political Research, TS Lombard, Allan Von Mehren, Chief Analyst and China Economist, Danske Bank and Tessa Wong, China Product Strategist, Allianz Global Investors, to address the challenging geo political situation, the chinese economy and China as an asset class.
This seminar will address the current and key questions in relation to whether the risk premium for investing in Chinese equities needs to be higher or if China is in fact investable. The seminar will cover the recent developments in China with regards to the geo-political situation, the Chinese governments political agenda and the pros and cons of Chinese equities as part of equity portfolios.
The seminar is moderated by Otto Friedrichsen, Head of Equity with Formuepleje A/S and member of the Equities Committee, The Danish Finance Society/CFA Society Denmark.
