ATC Professional ViewPoints

Recently, the Australian superannuation fund awarded a mandate to Ninety One that targets Chinese equities. Will dedicated China market exposure become a norm for global institutions? 18 November 2020 Recently, State Super, the manager of A$42 billion Australian superannuation fund, awarded a mandate to Ninety One, a newly rebranded asset management house headquarters in the UK and South Africa, that targets Chinese equities. This is one of the earliest discrete allocations to Chinese equities by Australian institutional investors. Earlier in the year, we saw investors from other jurisdictions placing large tickets of investment [...]

Chinese alternative investment can provide strong alpha generation opportunities for global investors yet there are also a few challenges ahead. Richard Johnston of Albourne Partners talks about the pros and cons of China's alternative investments. 24 August 2020 Chinese alternative investments (hedge funds plus private market investments) have proved to be a strong alpha generator and caught increasing attention from global investors. Yet the manager selection, due diligence, and ongoing monitoring is no light job at all. Richard Johnston, Partner and Head of Asia for Albourne Partners, the alternative investment advisory firm for global institutional investors, talked [...]

The Pandemic hit the Chinese PE industry but tech-driven investments get an unexpected boost. Rafael Ratzel of Beijing based TH Capital talked about the various PE investment themes post COVID-19 in China. 05 August 2020 Private equity has been a popular option for global investors in their China asset allocation. But how much damage has the COVID-19 pandemic made to the PE industry in China and is it a good time to invest? If so, what sort of investment themes to pursue? ATC interviewed Rafael Ratzel, Executive Director & Head of International Investments of TH Capital, who [...]

Active quantitative investment in China A-share market is still in its early stage, which can leverage the market efficiency and generate positive alpha opportunities. One of the leading quantitative portfolio managers, Hanqing Tian, portfolio manager & CIO and Deputy General Manager of Huatai-Pinebridge Fund Management Co., Ltd. shared her views on the active quantitative strategies in China A-share market. 27 July 2020 When approaching the Chinese equity market, global investors are usually faced with the choice of active vs passive/rule-based strategies. Now there is a somewhat hybrid in China called “active quantitative strategies” which has proved to [...]

ESG investment has become a fast-development phenomenon in China. What are the key drivers and how sophisticated are different players? Dr Dequan Wang, founder and CEO of Governance Solution Group shares his observations. 20 July 2020 It may be a surprise to you, but ESG is among the hottest topics in the Chinese investment community these days. A total of 48 Chinese organisations have become PRI signatories and 3 quarters of them are asset managers.  Quite a number of ESG initiatives have been launched by regulators, trade associations and market players. This is a big contrast to [...]

Foreign institutional investors keep increasing their holdings of Chinese bonds for 19 consecutive months. What makes China’s bond market attractive to foreign investors? Edmund Goh from Aberdeen Standard shared his views. 13 July 2020 In the first half of 2020, data from CCDC (China Central Depository & Clearing Co., Ltd.) shows an increase of RMB319.04 billion in foreign institutional investors’ holding of Chinese bonds, 2.3 times the same period last year. Foreign institutional investors keep increasing their holdings of Chinese bonds for 19 consecutive months, despite the COVID-19 pandemic. As of the end of June 2020, around [...]

China has come up with a post-COVID-19 recovery package focusing on stability and tech innovation, without a GDP growth target. Nicholas Chui of Aberdeen Standard explained the logic behind this unusual package and shared his new equity investment themes. 29 June 2020 Recently, the Chinese government revealed its economic recovery package post-COVID-19. Much different from the 4-trillion RMB stimulus package China adopted in 2008 amid the global financial crisis, this recovery package has a much smaller headline figure but has a clear focus on supporting economic stability, SME development and technology innovation. It is also the first [...]

Will the recent breakthrough in QFII regulation bring the scheme back to the central stage as a preferred access channel to China's capital market? Melody Yang of Simmons & Simmons and Eugenie Shen of ASIFMA share their insight. 24 June 2020 On 7th May 2020, Chinese Central Bank (PBOC) and State Administration of Foreign Exchange (SAFE) announced a new set of rules for QFII/RQFII account management. It lifts the quota limitation and substantially simplifies the process of investment proceeds repatriation. The top financial official also confirmed at the recent Shanghai Lujiazui Forum that the long-awaited new breakthroughs [...]