We have a distinguished history in China. Our award-winning bond team started investing in offshore China bonds as early as 2002, while the equity team has managed Greater China equities since 2005. Today, our investment teams oversee a total of USD221.4 bn (as at 31 December 2022) in Chinese equities and bonds, which underlines Eastspring’s commitment to one of the world’s most active and progressive markets.
The complexity of the China A share market and its many unique characteristics mean that a detailed understanding of the market, its nuances and macro policies is needed to identify the best opportunities. Our Shanghai-based research team provides extensive company knowledge and research experience, helping us to deliver differentiated investment performance to investors. Our on-the-ground presence provides us with deep insights into the local market, enabling us to come up with alpha-generating investment ideas. The distinct sector specializations within the research team help us uncover hidden champions, beyond the traditional large cap companies.
Our China A Shares Growth Strategy’s lead investment advisor has 22 years (as of December 2022) of investment experience in the China A-share market; one of the longest tenures in the region. Together, the team is able to navigate the fast-moving and highly complex market for investors.
Our investment philosophy
Market inefficiencies can be driven by various dynamics, including sparse company research; short-term, quickwin investor perspectives; and a significant level of retail participation in China’s equity market.
Such inefficiencies create opportunities for longer-term investors who can look through the near-term noise.
We believe that a comprehensive understanding of macro factors coupled with in-depth fundamental analysis provides the team with a 360-degree perspective of growth, valuation, and sentiment indicators, which are key drivers for the China A share market. This allows us to deliver potentially market-beating repeatable returns.
Our investment process
We screen the China A share investment universe to identify potential investments.
Our analysts harness Eastspring’s proprietary research tools to create scorecards for each potential investment. This helps prioritize our fundamental research efforts.
We refine the list further by examining potential catalysts for company growth, the quality of management teams and their business models, as well as their corporate governance frameworks.
Our final portfolio, which contains our highest conviction investment ideas, is driven by further in depth research that considers company growth drivers, earnings sustainability, valuation, and various risk factors including financial, downside, volatility, and material ESG challenges.
For more information on how to invest in these strategies, contact us here.
Our team of experts is focused on delivering superior long-term outcomes to investors.
Investment Advisor of China Equities
Head of Equities, Eastspring Shanghai
Jie Lu, PhD, CFA
Named Manager for China A-shares Growth
15 May | Navin Hingorani
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