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Reflections on my recent visit to China

In
my recent visit to China, I met with a variety of clients, as well as digital
companies. In spite of the overhang of the US-China trade wars, everyone I
spoke with remained optimistic about the opportunity for further investment in
this important market and broadly bullish in their long-term economic outlook.

This optimism is consistent with the results of our recent China survey of more than 400 asset owners and professional investors across North America, Asia Pacific and Europe. In our survey, we found that half of the respondents have increased their investment allocations in China over the past year, and more than 60% said they expect to increase their China exposure over the next 12 months.

It’s
clear from my discussions that Chinese authorities are committed to supporting
investor interests in the country’s capital markets and are taking constructive
steps to address investor concerns. For international investors, they have
taken steps such as lifting investment quotas in the Qualified Foreign Institutional
Investor (QFII) program to allow for easier foreign capital participation.

China’s
assets under management continue to grow exponentially on its digital wealth
platforms, which are enabling young and technology savvy/growing middle-class investors
to participate in the markets efficiently and at scale. An early glimpse of
this trend several years ago convinced us to launch our own digital wealth
platform in the Americas with the acquisition of Jemstep, which we’ve expanded
over the years with further acquisitions in Europe and the US. Building on the
strength of our franchise in China, Invesco is participating in a number of the
country’s digital wealth platforms through its joint venture Invesco Great Wall,
which are making meaningful contributions to our business.

As
you would expect, the clients I met with were curious about US sentiment toward
China, given the US-China trade wars. As our survey results confirmed, the
bullish stance of institutional investors in the US (as well as Europe) is
seemingly undeterred by trade tensions. We believe this, coupled with the
easing barriers to entry and ongoing regulatory reforms in China’s vast
investment market, should further drive interest and investment in one of the
world’s most attractive and exciting markets.

Important information

Blog
header image: Sean Pavone / Shutterstock

Invesco
Great Wall Fund Management Co. Ltd. is a 49% Invesco-owned joint venture. Jemstep,
Inc. provides a digital solution for investment advisors. Both entities are
wholly owned indirect subsidiaries of Invesco Ltd.

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