Will the year of the tiger be a roaring success for China?

Will the year of the tiger be a roaring success for China?

We believe Chinese companies have strong growth prospects, but these may be missed if looking through a high-level macro lens only.

China is a hub of technological and entrepreneurial prosperity, and within it lies fathomless opportunity. After what has been a tough year for China and emerging markets, the market is poised for a bounce-back, driven by an adjustment to regulatory tightening.

Importantly, the one-party nature of China makes it far more durable to inflationary worries and a slowdown, as the government controls both sides of the banking system – lenders and borrowers. The largest borrowers are state-owned, making China resistant to a withdrawal of capital from foreign investors.

Ultimately, if investors can identify the right managers and fund, China remains a solid capital allocation destination.

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