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]
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Remember, all investments can fall in value as well as rise, so you could make a loss. Before you make any investment decision, make sure you’re comfortable and fully understand the risks.Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.

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