China continues to represent good opportunities for long-term investors. The market is huge with over 4000 companies, domestic growth remains robust (even if less strong than in previous years) and skilful managers continue to deliver outperformance. The regulatory crackdown has reminded us of the benefits of a diversified exposure, together with the value of having local specialists who are likely to understand regulatory themes and messages somewhat better than global investors. To understand the regulatory developments, it is important to separately address the changes and the intentions behind them.
Read RisCura’s full regulatory note to understand these changes and the intentions driving them.