How to Invest in China Responsibly

 

How to Invest in China Responsibly

There are strong long-term reasons for investors to allocate to China, be it for asset or theme exposure, diversification needs, or alpha generation. For many investors, however, the bigger issue is whether having exposure to China can be done in keeping with a commitment to being a responsible steward of capital. There’s perhaps no other market where Environmental, Social and Governance (ESG) issues, not to mention geo-political concerns, are more top of mind. How can investors align their principles with the opportunities that China has to offer? In this roundtable discussion, Matthews Asia Chief Investment Officer Robert Horrocks, PhD, Head of ESG Kathlyn Collins and Portfolio Manager Andrew Mattock share different perspectives.

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Specialist Asia Expertise     At Matthews Asia, our team of experienced investment professionals regularly conducts first-hand research and analysis on the markets they cover and share their insights to keep you well-informed.   SUBSCRIBE

Risk Considerations Investments involve risk. Past performance is no guarantee of future results. Investing in Chinese securities involve risks. Heightened risks related to the regulatory environment and the potential actions by the Chinese government could negatively impact performance. Investing in international, emerging and frontier markets may involve additional risks, such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Additionally, investing in emerging and frontier securities involves greater risks than investing in securities of developed markets, as issuers in these countries generally disclose less financial and other information publicly or restrict access to certain information from review by non-domestic authorities. Emerging and frontier markets tend to have less stringent and less uniform accounting, auditing and financial reporting standards, limited regulatory or governmental oversight, and limited investor protection or rights to take action against issuers, resulting in potential material risks to investors. Pandemics and other public health emergencies can result in market volatility and disruption.