China

Headwinds are intensifying against the country’s economy, casting doubt on whether the current mix of macroeconomic and public health policies can deliver the growth targeted.

Rob Brewis, one of the lead fund managers on the Aubrey Global Emerging Markets Fund, is finding more opportunities for retail and institutional investors in companies in India (which now accounts for 42% of the portfolio), Thailand, Indonesia, Vietnam, Korea and Taiwan.

With China unlikely to give up its zero-COVID stance, we expect another month of disruption in the mainland before the situation normalizes in May.

Chinese authorities now have long track record of balancing a policy of covid-19 elimination, while maintaining economic activity.

Investors who want to diversify their global portfolios should certainly consider China, as policymakers there are charting a different course to their western counterparts.

As China slows after a strong 2020 and 2021, there will be policy divergences just as the US and Europe gain, in parallel, momentum.