It is worth noting that while the significant rally in BATJX – Baidu, Alibaba, Tencent, JD.com, Xiaomi – and the offshore listed tech/internet players have dominated headlines lately, the bottoming out of the overall China market since the policy shift in late September last year started onshore, with A shares experiencing a sharper rebound first and with a more slower but sustained trend, as domestic investors were more sensitive to the reset in policy tones and significant shift in government’s commitment to reviving economic growth and capital market activities. In this article, Partner & Co-CIO David Lai discusses the factors that could drive a more sustained outperformance in onshore equity market, and why it is a good entry point to rotate from offshore to onshore companies in policy supported sectors.

Mar 20, 2025

While the market is focused on the size of the fiscal stimulus emerging from the Two Sessions currently underway in Beijing, there are other important drivers that could shape the outlook for the relative performance of Chinese equities versus US stocks. The first is about relative valuation; the second is cyclical – that is, the turning of the US economic cycle; and the third is secular – that is, the sustainability of the repeated use of the “policy bazooka” in the US. In this article, our Senior Advisor Say Boon Lim discusses what causes the underperformance of US market since the Inauguration of President Trump, and diversification out of the US equities has become more important than ever while the slump in consumer confidence and potential debt crisis continue to add downward pressures on the US economy.

Mar 09, 2025

The Two Sessions have delivered a strong signal: China’s economy remains focused on steady growth, with robust government support, despite mounting global uncertainties. With an economic target of 5% growth for 2025 and the highest budget deficit in three decades, policymakers are set to implement a more proactive fiscal policy. This will include increasing government financing to drive domestic demand and boost private sector confidence. In this article, our Partner & Co-CIO David Lai highlights growth and policy supported areas to focus, during this ideal window to add exposure for Chinese equities, particularly opportunities from leaders in artificial intelligence (AI), semiconductors, robotics, and biotech that are still trading at attractive valuation via a via global and even offshore listed China peers.

Mar 09, 2025

After a stellar third quarter on renewed hopes of powerful fiscal stimulus, Chinese stocks followed shares in other emerging markets down in Q4, giving back some of those gains as the CSI 300 Index slipped 1.7% (CNY). Weighing on mainland stocks were investors’ fears that Trump 2.0 tariffs, along with a lack of follow-through by Chinese policymakers, might hinder the country’s growth revival. In this article, Dr. Phillip Wool, Global Head of Research of Rayliant Global Advisors, discusses what will spur Beijing to inject more stimulus, where it might go, and what Trump’s trade war and the DeepSeek saga might tell us about where A shares outperformance could come from in 2025.

Feb 24, 2025

Robust projected earnings growth for 2025 – part of a multi-year growth story driven by Artificial Intelligence – will give the Taiwan market a helpful buffer amidst geopolitical and trade uncertainties. Also, Taiwan has added protection from being the indispensable total supply chain for the tech industry – with its dominance driven by semiconductor and technology manufacturing leaders like TSMC, Hon Hai, and MediaTek. Economic growth is expected to remain solid at around 3.3% for this year. Beyond the tech sector, the government’s push to upgrade its financial services capabilities, with high domestic penetration and receptiveness of financial products, also provide promising tailwinds. The risks of Trump 2.0 make Taiwan a nuanced opportunity this year. It threatens volatility. But the AI revolution remains a multi-year growth driver, and Taiwan's strategic role, indeed global leadership in semiconductor manufacturing, offers strong long-term potential. Notwithstanding geopolitical considerations and general market risks, the medium to long term growth trajectory remains robust. In this article, our Portfolio Manager Alex Chu suggests that corrections could provide the long term investors attractive entry points into Taiwan’s technology-driven equity market which has a low correlation with global equity market as well as other major asset classes.

Jan 27, 2025