WHY CHINA A-SHARES?
SECULAR TRENDS TO FUEL ECONOMIC GROWTH
We expect the macroeconomic environment to be relatively stable. A hard landing is unlikely given a certain speed of growth is needed to facilitate the smooth implementation of the structural reform and deleveraging process. Meanwhile, China’s average per capita consumption and income are expected to see a significant increase in the next decade, which will likely translate into strong potential for consumer sectors in the country.
With the continued shift to a consumption-driven economic model from an investment-driven one, China is expected to make better progress in achieving her long-term economic goals. Secular trends may provide different sectors, especially those related to “New China”, with abundant growth opportunities and set a favourable backdrop for equities.
POSITIVE EARNINGS GROWTH PROSPECT FOR A-SHARES
The increasing breadth and quality of corporate earnings growth in the A-Share market are supportive for equity performance. With a more diverse sector composition combining growth and income potential, the A-Share market provides a diverse opportunity set across cycles.
INCREASING FOREIGN OWNERSHIP FROM INDEX INCLUSION
MSCI’s inclusion of A-Shares in its indices may help raise interest in A-Shares from foreign investors, thanks to the easier access to the market and a more diversified investible universe. China’s equity market will likely see more support as foreign flows increase.
WHY INVEST IN JPMORGAN CHINA A-SHARE OPPORTUNITIES FUND / JPMORGAN CHINA PIONEER A-SHARE FUND?
1. A “best idea” portfolio of Chinese equities
The A-Share market’s diverse sector composition allows the Funds to capture long-term growth opportunities, which can be found in sectors with bountiful “New China” plays. Meanwhile, the fund managers take a “best idea” approach with a focus on quality Chinese companies, benefitting from the comprehensive research and local knowledge of our investment team.
2. Bottom-up stock selection supported by macro insights
The fund managers integrate bottom-up stock selection with top-down macro and policy views to identify top performers over the longer term, supported by the macro strategists of our Emerging Markets and Asia Pacific (EMAP) Equities team.
3. Access to A-Share investing with RMB/USD as base currencies
The JPMorgan China A-Share Opportunities Fund is denominated in RMB with two share classes, while the JPMorgan China Pioneer A-Share Fund is denominated in USD, offering different choices to investors with different needs.
Extensive exposure to A-Shares across a wide variety of sectors
Long-term capital growth potential by participating in “New China” investing
Diversification of China plays away from the offshore markets