CIO Robert Horrocks, reviews a topsy-turvy 2020 and shares the reasons for his relative optimism for Asia and the emerging markets in 2021.
Despite a pandemic, tariffs and superpower political tensions, the resilience of the Chinese economy was clear in 2020. In this issue of Sinology, we highlight five macro trends from 2020 that investors should watch this year.
Corporate earnings are likely to be strong in 2021, reflecting strong consumer demand and resilient cash flows.
On January 11, 2021, the Executive Order 13959 (“E.O.”) issued by Donald Trump designed to protect U.S. investors from financing Communist Chinese Military Companies will go into effect. In this Q&A, Matthews Asia addresses key questions on its potential impact for investors.
A nascent global recovery presents both risks and opportunities for fixed income investors. Portfolio Manager Teresa Kong, CFA, discusses why China dominates the universe for EM debt and why Asia may outperform the rest of EM for the foreseeable future.
Investors frequently ask us for opinions on specific countries within emerging markets. Depending on what’s in the headlines, the country might be China, India, Thailand or Mexico. Conversations that start top-down and focus on country allocation include many natural questions for those considering emerging markets.
As an unusually extraordinary year comes to a close, investors may still have many lingering questions about where the global economy may be headed. Even as the world continues to fight the pandemic, there is reason for optimism in 2021. The strength of Asia’s economies—and China in particular—are recovering and are well-positioned to set the stage for future growth.
Tailwinds for emerging markets include strong potential for earnings recovery, as well as a weaker U.S. dollar and reasonable equity valuations. Chief Investment Officer Robert Horrocks, PhD, considers the investment landscape in his annual review and outlook.
For global fixed income investors, diversification is key. In our latest Q&A, Portfolio Manager Teresa Kong, CFA, discusses where she's finding opportunities across Asia today.
Within the broader Asia Pacific universe, Portfolio Managers Yu Zhang and Joyce Li see attractive total return potential among dividend paying stocks.
Equity price gains in Japan may be driven by innovation over the long term. Portfolio manager Shuntaro Takeuchi discusses the opportunity set.
Sinology explores how U.S.–China relations can develop under President-elect Biden administration in three key phases.
At dinner tables throughout emerging markets, middle-class families tuck into comfort food, share details about their day and toast each other's successes. Languages and cuisines may differ, but many elements of everyday life are often quite similar.
Within emerging markets, we find companies at the forefront of important global developments, including the health care and technology sectors.
China Macro Analyst Julia Zhu returned to Mainland China in August to visit her parents, giving her a first-hand look at one aspect of the incredibly intensive program for controlling the coronavirus.
Investors often think of emerging markets as taking cues from their developed counterparts—for example, by aiming to boost consumption and to achieve productivity gains. It may come as a surprise that some emerging economies have made an earlier start in adopting environmental, social and governance...
Across emerging markets, growth in e-commerce accelerates as the pandemic reshapes consumers' shopping patterns.
In this short Q&A, Teresa Kong, Portfolio Manager, provides her insights on the economic impact of the coronavirus and where she sees risks and opportunities, and why the current prices could represent a once in a decade opportunity to buy Asia high yield.
With the coronavirus largely under control in China, we have an opportunity to consider what the post-COVID investment environment there might look like.
Amid a global pandemic and continued U.S.-China trade tensions, quality-growth companies remain strong performers. Portfolio managers Sharat Shroff, CFA, and Inbok Song discuss the opportunity set for growth investors.
Across emerging markets, urban consumption provides ballast and stability to a number of sectors and industries.
Emerging markets are developing richer, more consumer-led economies as China expands its infrastructure investments and trade relationships.
Innovative companies are reshaping Asia's investment landscape, as older industries recede and newer business models take their place.
What are the lessons that can be learned from observing the Chinese economy and U.S.–China relations? Sinology explores the takeaways from five topics including China’s approach to controlling COVID-19, its economic recovery and Washington’s misguided approach towards China.
Portfolio managers Taizo Ishida and Michael Oh, CFA, explore the growth drivers for Asia's new economy sectors, including how to measure and assign potential future value of intangible assets.
As Japan considers Prime Minister Abe's successor, fiscal and monetary policy appears to be remaining stable and Japanese corporate profits are climbing back from COVID-19 impact, at least for now.
Four important trends are continuing in China: COVD-19 remains largely under control; the economy is in a V-shaped, post-COVID recovery, led by strong domestic demand; U.S.-China relations are tense and likely to worsen; but the political problems between Washington and Beijing should continue to have little impact on China's economy or its investment environment.
China's V-shaped economic recovery continued for a fourth consecutive month in June, led by strong domestic demand. If COVID-19 remains under control, China can remain the world's best consumer story.
Software and hardware companies are supporting new forms of consumption in Asia, such as the growing popularity of online games. Portfolio managers Sharat Shroff and Inbok Song discuss the opportunity set for long-term investors.
As the global economy slows, we remain optimistic about the long-term growth potential of Chinese equities. From a public health perspective, China has flattened its curve of new cases COVID-19. Fiscal and monetary stimulus, while incremental, remains supportive. Interest rates remain positive, giving China's central bank room to maneuver.
India's government is taking incremental steps toward re-opening its economy, starting by bringing production and manufacturing facilities back online.
As we look at emerging from the coronavirus pandemic, it is now becoming clear that there may be some long-lasting impacts to the world that will affect politics, economics and investments. Are we heading towards a world of two asset classes: the U.S. and China?
China's economy looks to be well on its way to recovering from the coronavirus-imposed lockdown with consumer spending, manufacturing and investment bouncing back. But can we trust China's macro numbers?
China's economy was the first to suffer the consequences of fighting the novel coronavirus and is the first on the road to recovery. After an initial cover-up and more than 3,000 deaths, China appears to have brought COVID-19 under control and laid the foundation for a gradual economic recovery, although normal activity levels may not be reached until 2021.
Japanese growth stocks, along with global equities, experienced considerable volatility in the first quarter. Uncertainty around the coronavirus, slowdowns in global manufacturing activity and worries about dampened consumer activity related to Japan's consumption tax each impacted Japan's markets.
After an initial cover-up and more than 3,000 deaths, China appears to have brought COVID-19 under control, just as the spread of the coronavirus is accelerating across the U.S. and Europe. With China's domestic-demand driven economy set to rebound and mainland investors avoiding the panic that has smacked western markets, its economy could put a floor under global growth and offer a safe haven to investors.
Long-term perspective is key as coronavirus and falling oil prices roil markets. Members of the Matthews Asia investment team share their insights and outlook amid volatile markets.
I've been fielding many questions from investors about the new coronavirus, COVID-19, and would like to share my answers with you in this issue of Sinology.
Matthews Asia CIO Robert Horrocks, PhD, and Investment Strategist Andy Rothman offer their perspectives on the Coronavirus and its possible impact on China's governance and economy.
The publication this week of the U.S. — China trade deal and the final macro numbers for 2019 should set the stage for healthy economic performance and stronger market sentiment in China in 2020, but the risk of a return to tense relations between Washington and Beijing looms over 2021 and beyond.
The best environment would be moderate U.S. growth, a sideways U.S. market and a weaker U.S. dollar.
President Trump called it “amazing,” and U.S. Trade Representative Lighthizer said the China deal is “remarkable.” In my view, however, it is merely the best trade deal in the last 36 months of Chinese history, and it falls well short of two key objectives. Because the deal sets highly unrealistic goals for U.S. exports to China...
Asia goes into the global deceleration with already-lean companies and a valuation advantage.
Improvements in accessibility are expected to accelerate further inclusion in the near term.
China has come to the forefront of investors’ minds, and has become a larger portion of global indices over the past years while dominating global headlines. We believe investors’ slow reaction to the rise of China as a global economic power creates an opportunity for investors who are willing to lead the pack.
As China's economy continues its shift toward services and consumption, small and medium-sized businesses are accelerating this transformation.
A trade deal is expected when Presidents Trump and Xi meet in November, but even if the talks fail, Sinology explains why China can mitigate the impact and maintain the world’s best consumer story.
Chinese equities were flat in September. A-shares posted slight gains while small caps posted slight losses.