This is a sponsored video from J.P. Morgan Asset Management.
Tai Hui, Chief Market Strategist Asia Pacific for J.P. Morgan Asset Management, highlights the outlook and long-term growth drivers of Chinese economy with investment implications.
After 2 years of disappointing performance, the economic backdrop is more constructive for Chinese equities. The Chinese government set the 2023 growth target at 5%, which is strong when global growth is dampened by high rates. High frequency data are showing rapid recovery in consumption, which hopefully can boost business sentiment so they can step up investment as well. In the long term, industrial policy and development in new manufacturing can provide a sustained source of growth. Thus, there are both cyclical and structural factors for investors to include China in their portfolios.