Counting on the Chinese consumer

FOLLOWING some excitement around the turn of the year, China’s equity market has been grinding lower since January, as property market woes and geopolitical risks weighed on growth and sentiment.

We believe the most attractive investment opportunity in China is tied to the domestic consumer. We see sustained growth in consumer spending, which is likely to benefit media and entertainment companies.

Therefore, we have a preferred view of the communication services equity sector, which we expect to outperform China’s broader equity market.