Authors
What have been the key drivers over 2022?
2022 has been an extremely volatile market, with markets falling from peak levels, geopolitical tensions high and inflation spiralling out of control.
What areas of the Asia market does the team see opportunities going into 2023 and why?
Some of the opportunities that we see in the region are as follows.
In China, despite the heavy sell-off we have seen over the past year, we are not rushing to add to stocks here. We do not believe that the market is un-investible, but the risks of investing here have increased. We favour domestic Chinese companies in sectors which are aligned with long-term policy goals such as decarbonisation and innovation, but this must be balanced by elevated valuations.
India should continue to be a relatively bright spot. The economy offers attractive long-term structural growth because of favourable demographics and ongoing infrastructure development, and where there are high-quality companies which can capitalise on this economic growth.
Elsewhere, in Australia, the equity markets continue to offer attractive investment opportunities, where companies possess strong corporate governance and face limited competitive threats.
To conclude, given the uncertain market environment we are in, we continue to be disciplined and stick to our investment process, focused on our bottom-up stock selection, the long-term fundamentals of companies and being disciplined on valuations. Because this will be key in ensuring that we can generate consistent returns for our clients.
Important Information
The contents of this document may not be reproduced or distributed in any manner without prior permission.
This document is intended to be for information purposes only and it is not intended as promotional material in any respect nor is it to be construed as any solicitation and offering to buy or sell any investment products. The views and opinions contained herein are those of the author(s), and do not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. The material is not intended to provide, and should not be relied on for investment advice or recommendation. Any security(ies) mentioned above is for illustrative purpose only, not a recommendation to invest or divest. Opinions stated are valid as of the date of this document and are subject to change without notice. Information herein and information from third party are believed to be reliable, but Schroder Investment Management (Hong Kong) Limited does not warrant its completeness or accuracy.
Investment involves risks. Past performance and any forecasts are not necessarily a guide to future or likely performance. You should remember that the value of investments can go down as well as up and is not guaranteed. You may not get back the full amount invested. Derivatives carry a high degree of risk. Exchange rate changes may cause the value of the overseas investments to rise or fall. If investment returns are not denominated in HKD/USD, US/HK dollar-based investors are exposed to exchange rate fluctuations. Please refer to the relevant offering document including the risk factors for further details.
This material has not been reviewed by the SFC. Issued by Schroder Investment Management (Hong Kong) Limited.
Authors
Topics