Investments / Equities

Not so much bull in the China equity shop!

Global investors are losing their appetite for China equities following growing interference by China’s government in business and financial activities. Over the past year or two, China has stepped in to delay and influence the listing of billionaire Jack Ma’s Ant Group; issued a range of anti-trust fines, including a whopping US$2.8 billion fine to Alibaba; and instructed Uber-equivalent, Didi, to remove 25 of its apps from online app stores. Clearly, the bull is no longer rampant in the China equity shop!

Inflation dominates the onshore, offshore equity debate…

The decision to remain ‘long’ global and offshore equities, and the specific sectors and shares you should be choosing, could be functions of your view on US inflation. As 2021 draws to a close, asset managers seem to be in one of two camps, with some seeing inflation as a genuine systemic problem, and others arguing that it will prove transient… “US Inflation might endure for a bit longer due to supply chain issues such as the well-documented computer chip shortage; but ultimately, it will not be a problem,” said Chris Freund, co-manager at Ninety One Equity Fund, during a panel debate at the 2021 Morningstar Investment Conference.

Five reasons why energy transition stocks can weather the inflation storm

What were some of the key themes shaping equity markets this quarter?

After a bullish start to the quarter, equity markets began to struggle, amid political and regulatory risks in China and the US, coupled with renewed inflation worries, slower growth concerns, and potential systemic risk from Chinese property developer Evergrande’s potential default.