From ‘Uninvestable’ to Contrarian Long: Are China Equities Best Positioned for a Winning Year in 2023?
After a year of lockdowns and zero-COVID policy, China’s economy is reopening in 2023. A difficult year for developed market equities in 2022 makes it easy to forget how bullish COVID reopening was for US and European stocks.
Combined with high excess savings, stimulative monetary and fiscal policy, and light positioning, the tailwinds for China stocks compare favourably to the headwinds facing other major stock markets at the start of the year. On top of this recovery catalyst, heightened dispersion and volatility in China equities means it is a ripe environment for skilled stock pickers.
Frank Ding, Chairman and CIO of FountainCap Research & Investment, has a long record of achieving market beating returns in China and believes that the risk/reward dynamics for China stocks are especially favourable today.
Listen to Frank as he provides a summary of Q4 and outlook for the FountainCap portfolio in a discussion with Kit Sanford of Aravis Capital.
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