Why now is the time to reconsider China


China is changing. Its economic growth is increasingly driven by innovations in technology, data and science. Its capital markets are developing with a similar energy, on their way to becoming an integrated part of the global financial system.

Now is the time to get ahead of the opportunities as an investor.

Innovation and transformation: key drivers of China’s growth

Advanced-manufacturing sectors such as ecommerce, biotechnology and electric vehicles have the potential to add more value to China's economy than traditional manufacturing. China's leadership role in these areas ensures that it will no longer be seen as a country that imitates others’ success.

China´s path to growth

What will the “China of the future” look like?

Some of China’s most significant transformational efforts include the success of domestic brands, a growing emphasis on sustainability and a commitment to leadership in advanced technologies.

  • Improvement in product quality is boosting dominance of local brands
  • In 2010, only 10% of smartphones sold in China were domestic brands; now it's close to 90%
     

  • China plans to achieve carbon neutrality by 2060 (and peak CO2 before 2030)
  • China has been the largest investor in renewable energy over the last decade

  • Healthcare: drug development is surging; China is the world's largest genetic databank 
  • Cryptocurrencies: watch out for the first truly digital currency in a major global economy

How China can help diversify your investments

Icon: directions China’s markets have historically exhibited low correlations to other major markets – meaning they frequently move in different directions. That can bring diversification benefits.

Icon:chart Equities are available in a range of exchanges – from Shenzhen and Hong Kong listings to the Nasdaq-like STAR market.

Icon: coins Bonds can be accessed in onshore and offshore markets, and denominated in US or Chinese currencies, to achieve a range of diversification objectives.

Our China expertise is deep and broad

In many ways a unique market, China is still unfamiliar to many investors. Partnering with someone who understands this dynamic region is critical. At Allianz Global Investors, we have a wealth of research capabilities across our investment platform, including proprietary insights from our Grassroots® Research team, with correspondents in China and across Asia.

China expertise infografic

Explore further China insights

Our experts regularly provide investment insights about China, keeping you up-to-date about this dynamic region.

15/09/2021 | China insights

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09/09/2021 | China insights

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29/07/2021 | China insights

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  • Infograph: China’s path to growth
    1. Source: eMarketer. Data as at 2020.
    2. Source: Statista. Data as at 2020.
    3. Source: Asian Bonds Online. Data as at 31 December 2020.
    4. Source: World's Top Exports. Data as at 2019.
    5. Source: OECD, Allianz Global Investors. Data as at 2018.
    6. Source: World Intellectual Property Organization. Data as at December 2019.
    7. Source: Goldman Sachs. Data as at July 2020.
    8. Source: Hurun Research Institute, Nikkei Asia review. Data as at 2019.
    9. Source: Belfer Center for Science & International Affairs.
    10. Source: IMF. Data as at 2021.


    Infograph: Allianz Global Investors’ China expertise
    Source: Allianz Global Investors. Assets under management data as at 31 January 2021.

    Grassroots® Research is a division of Allianz Global Investors that commissions investigative market research for asset-management professionals. Research data used to generate Grassroots® Research reports are received from independent, third-party contractors who supply research that, as far as permissible by applicable laws and regulations, may be paid for by commissions generated by trades executed on behalf of clients.

     

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