Tap into the growth and diversification potential of Chinese equities.
THE OPPORTUNITY SET
Chinese equities are among the world’s largest markets
Comprising both onshore and offshore companies, Chinese equities represent over USD 15 trillion* in market capitalisation and look set to benefit from key structural trends such as China’s transition to a service- and consumption-led economy. What’s more, they still look attractively priced relative to developed markets.
Complimentary nature of Chinese equity markets offer an exciting opportunity and diversification
Offshore equities historically have been dominated by large companies in the financial and energy sectors (‘old economy’). These stocks are expected to make significant progress in terms of mixed-ownership reforms and improved corporate governance.
Onshore A-shares have higher exposure to non-government-owned companies in consumption-driven industries. A-shares offer a much more diverse universe, especially in structural growth sectors such as consumer goods, industrials, technology, new materials and healthcare (‘new economy’).
Capitalise on growth prospects of the “all-China” universe
Invest in Chinese equities, including companies in both onshore listed (China A-shares) and offshore listed (Hong Kong, Taiwan, US American Depository Receipts) companies.
Focus on three key structural themes with potential long-term upside opportunities
Active, bottom-up stock-picking approach integrating ESG criteria
The investment team believes that companies with sound or improving environmental, social and governance (ESG) practices are typically of a higher quality and more likely to generate longer-term sustainable earnings. This enhances the investment process and enables the creation of a portfolio that targets quality stocks with high growth potential, strong management and cash flow predictability.
A highly-rated fund
Four stars by Morningstar for overall period.**
An award-winning investment team***
David Choa heads our Greater China Equities team. He has more than 17 years of industry experience – from consulting, to corporate finance and equity investing, with a focus on China. David is supported by a team of five portfolio managers and analysts who are based in our Hong Kong and Shanghai offices. We believe a local presence is key to investing in China.
The team also has access to a senior economist dedicated to China, our Quantitative Research Group and our Sustainability Centre.
Today, the team manages over USD 3.5 billion in China-focused strategies.
Source: BNPP AM, as of June 2021
* Source: BNPP AM, Wind, FactSet, Goldman Sachs Research, Shanghai Stock Exchange, Shenzhen Stock Exchange as of October 2020.
** Classic, Capitalisation USD share class as at 30.06.21 by Morningstar.
*** Asian Private Banker, Asset Management Awards for Excellence 2020, Best Fund Provider – Greater China Equity, reflects the performance as of 31 August 2019. Benchmark Fund of the Year Awards 2020: China Equity Manager of the Year (Hong Kong & Singapore) and Greater China Equity, Best-in-Class, House Awards (Hong Kong & Singapore) reflect the performance as of 30 June 2020. Insurance Asia News, Institutional Asset Management Awards 2020: Equities Manager of the Year reflects the performance as o 31 December 2020.
This advertisement has not been reviewed by the Monetary Authority of Singapore. It is issued and has been prepared by BNP PARIBAS ASSET MANAGEMENT Singapore Limited [BNPP AMS]. It is produced for information purposes only and does not constitute: 1. an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or 2. investment advice. It does not have any regard to the specific investment objectives, financial situation or particular needs of any person. Investors should consult their own professional advisors in respect of legal, accounting, domicile and tax advice prior to investing in the fund(s), and in the event that he chooses not to seek advice from professional advisors, he should make an independent determination of the suitability and consequences of an investment. Investors considering subscribing to the fund(s) should read carefully the most recent prospectus, offering document including the risk factors and consult the fund(s’) most recent financial reports before investing, as available from BNPP AMS or its authorised distributors. Investments involve risks. Investments in emerging markets involve above-average risk. Given the economic and market risks, there can be no assurance that the fund(s) will achieve its/their investment objectives. Investments in the fund are not deposits or other obligations of, or guaranteed, or insured by BNPP AMS or its authorised distributors or its affiliates and are subject to investment risks, including the possible loss of principal amount invested. Returns may be affected by investment strategies or objectives, markets and economic conditions. Past performance of the fund(s) or the managers, and any economic and market trends or forecast, are not necessarily indicative of the future or likely performance of the fund(s) or the manager and the value of the investments in fund(s) may go down as well as up. Investors may not get back the amount they originally invested. Funds which are invested in emerging markets, smaller companies and derivative instruments may also involve a higher degree of risk and are usually more sensitive to price movements. Views and opinions included herein constitute the judgment of BNPP AMS and its affiliates at the time specified and may be subject to change without notice. BNP PARIBAS ASSET MANAGEMENT Singapore Limited – registered office at 20 Collyer Quay, #01-01, 20 Collyer Quay, Singapore 049319. Company Registration No. 199308471D.
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