Is China investable?

To some foreign investors, China remains to be uncharted territory. How should investors think about volatility in China? Is China investable? Is it worth the risk??

On Wednesday last week, Silverhorn Studios held a webinar, “Finding Opportunities amid China’s Volatility”, that focused on China's perceived inaccessibility. Moderated by Muting Zhu, the discussion featured our trusted partner Thomas Wong, CIO of Optimas Capital, and Silverhorn Portfolio Manager Marco Klaus who spoke about where the real opportunities lie.

The 3 key takeaways of the investing in China webinar:

1. China remains highly attractive?? China continues to be an attractive investment destination given its sheer size, deep liquidity, and structural inefficiencies (access barriers, high retail participation, under-researched). The key question for investors to ask is how to invest in China, rather than whether to invest. We believe China deserves a strategic allocation in every portfolio.??

2. The opportunity set is best captured with a multi-asset approach?? Changing regulations and high volatility are not new phenomena but rather market traits that will persist into the future amid China’s transition to a more sustainable yet slower stage of growth. A multi-asset approach can capture a broader opportunity set while mitigating downside risk and volatility.??

3. Partnering with specialists is essential?? In addition to investment skills, specialist managers have an intimate understanding of policy direction and access to onshore expert networks — all of which are required in building conviction.?

If you have questions about investing in China, leave it in the comments below.