How much heed should investors pay to Chinese political risk?
‘The current skittish attitude towards China has driven down a lot of share prices’
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‘The current skittish attitude towards China has driven down a lot of share prices’
The premium is linked to behavioural biases as opposed to risk
But it may not be to the degree most Western investors expect
Despite sharp decline in recovery expectations
The current yield-curve dynamics are not what we would normally expect in this stage of the business cycle
Two themes transcended geographies and business sectors to top investor preference
Fund managers can be buffeted between hitting goals but delivering poor performance and vice versa
But it ‘shows Beijing’s determination to end the implicit guarantees and allow the market to discipline zombie firms’
‘Governments seem to focus more on reviving economies and people’s spirits, after a depressing spring’
‘We scaled back top-down cyclical risk in our model portfolio during Q2’ says NNIP’s Moonen
Valuations reached all-time lows in 2020 on a price/book value basis
Healthcare looks like a good bet – but maybe not in the way you would expect