China assets back in favour amid low valuations, Beijing's vow to support economy

STRATEGISTS and some asset managers have pivoted towards a positive stance on China assets, citing attractive valuations and the China government's avowed intention to support the economy at a time when some global central banks have turned hawkish.

Capital outflows out of China assets, however, intensified in the weeks following Russia's invasion of Ukraine, leading some to question whether China's initial apparently equivocal stance towards the invasion prompted a reckoning, against the backdrop of the pursuit of environmental, social and governance values in investments.

The Institute of International Finance notes "unprecedented capital outflows'' out of China, beginning in late February after the invasion of Ukraine.