135. Why volatility can be your friend when it comes to A-shares

Rebecca Jiang, co-manager of the JPM China Growth & Income Trust, talks us through the growing opportunity in the A-Shares market and the importance of tapping into structural growth themes like technology, healthcare and consumption as China moves to a capital light growth model. She also tells us about the Chinese governments’ ESG agenda and why fears of inflation will not lead to another commodities bull market.
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JPM China Growth & Income Trust invests in ’Greater China’ companies which are quoted on the stock exchanges of Hong Kong, China and Taiwan, including A-Shares listed in Shenzhen and Shanghai or which derive a substantial part of their revenues or profits from these territories. The result is a high conviction portfolio of 60-80 stocks with a focus on higher quality businesses and structural growth opportunities – a move which has seen a greater focus on technology, automation, healthcare and consumption in recent times.

Read more about the JPM China Growth & Income Trust

What’s covered in this podcast

  • The benefits of being based in Hong Kong and the teams’ growing footprint in China [0:16]
  • Why having the flexibility to invest in Hong Kong, Taiwan, or even the US, is important [2:02]
  • The rise of the A-Share market and why volatility can be your friend [3:22]
  • Opportunities within the changing technology landscape within China [6:06]
  • The growth in healthcare and automation in tackling an ageing population [8:06]
  • The consumption upgrade among Chinese households [9:12]
  • The Chinese government’s ESG agenda and making sure companies do not take shortcuts [9:44]
  • Short-term inflation and why the argument for a new commodities bull market does not exist [11:56]
  • Why the introduction of an income-element to the trust will not change the investment process [14:37]
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