Against a backdrop of the ongoing pandemic, tighter regulation in China, and the prospect of reduced policy support from global central banks, 2021 has not been without its risks. However, as we look to the new year, we see opportunities for careful, bottom-up stock pickers in a wide range of industries across Asia
We are more optimistic about the investment outlook for China in 2022, especially relative to other emerging and developed markets. The country’s economic growth is being driven by both the policy and liquidity cycles, and we believe that monetary tightening has peaked. As such, we expect to see improvements in liquidity conditions.
Amid market uncertainty, we remain cautious moving into 2022. While new investment ideas are harder to find, we will still look for opportunities in situations where sentiment is negative to the point that fundamentals are ignored.
