China is rarely off the radar of Institutional Investors, but more recently for reasons that dissuaded new allocations: The regulatory crack-down on tech companies; a zero-covid policy that led to entire cities being shutdown, stiffling growth and supply chain fluidity; and volatile geopolitical tensions in the region. But there seems to be a renewed spark in interest as can be seen in the MSCI China Index, which increased around 20% between May and July.
Based on clicks and search queries on China, Institutional Investors seem to be focused on three things: Firstly, Chinese Government officials sentiment on economic growth; Secondly, how that growth is now being stimulated; And thirdly, how will that growth impact the global economy. Whilst US-China geopolitical risks seem to be on the increase, from an economic perspective, there are signs that Chinese Equity valuations may be on the rise once again.
Or put differently, can you avoid not to take a second look.