UK: Investing in China: stocks, bonds and portfolio considerations
China is hard to ignore these days. It’s the second largest economy in the world and growing. China’s effective Covid-19 response helped it to grow in 2020, while other countries grappled with restrictions.
The country is transforming into a technology-intensive powerhouse from a producer of cheap low-tech goods. The “new economy” sectors such as technology and healthcare are growing faster than the “old economy” sectors like energy and materials.
Chinese investment markets are subsequently becoming more diversified. Chinese equity and bond markets have low correlation to overseas assets because of the unique political regime, economic environment and market dynamics.
Read the full article at Barnett Waddingham.