Cash in on young Chinese consumers

A professional investor tells us where he’d put his money. This week: Howard Wang of the JPMorgan China Growth & Income trust picks three favourites

When investing in any emerging market, looking beyond immediate uncertainty can be challenging. However, with a total population of over 1.4 billion, China’s scope for long-term structural growth remains appealing, especially in sectors such as healthcare, technology and consumption. These areas are capitalising on the country’s transition to a more consumer-driven economy.

Since mid-January, Covid-19 has changed the landscape, at least temporarily. The situation is highly uncertain and still may worsen before it improves. Nonetheless, the fact that the Chinese government has mobilised its resources comprehensively and quickly suggests that the impact on consumption and business confidence may be cyclical rather than structural. So as long-term investors we continue to be positioned to benefit from the secular growth in emerging-market consumption.

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