Three Chinese stocks with long-term growth

Professional investor Rebecca Jiang of the JP Morgan China Growth & Income Trust picks three stocks that should cash in on the country’s growing millennial population.

While Covid-19 caused a short-term shock to the Chinese economy, the government’s quick and comprehensive mobilisation at the start of the pandemic has meant that the cyclical impact on markets has been short-lived. Meanwhile, as with many economies, the pandemic has accelerated certain structural trends in China that were already under way. We continue to find the most attractive opportunities in consumption, technology and healthcare, which are capitalising on China’s transition to a more consumer-driven economy.

Driving this shift is the country’s growing millennial population, which stands at around 400 million – more than the working population of Europe. This has had a huge impact on the technology and e-commerce sectors, cementing China’s position as the world’s number-one retail market.

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Rebecca Jiang is co-manager of the JP Morgan China Growth & Income Trust