China equities: casting far and wide for growth opportunities
We see a broad set of opportunities in China’s onshore and offshore equities as the economy returns to normality.
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Important Information
Below shows the Important Information of JPMorgan China A-Share Opportunities Fund, JPMorgan China Pioneer A-Share Fund, JPMorgan Funds – China Fund, JPMorgan Funds – Greater China Fund, JPMorgan China Income Fund, JPMorgan Funds – China Bond Opportunities Fund, please press the down arrow button next to respective fund name to view full details.
JPMORGAN CHINA A-SHARE OPPORTUNITIES FUND
- The Fund invests primarily (at least 70%) in equity securities issued in the People’s Republic of China (“PRC”) including but not limited to China A-Shares listed on the PRC stock exchanges (e.g. Shanghai Stock Exchange and Shenzhen Stock Exchange). The Fund may also invest in derivative for investment and hedging purposes.
- The Fund is therefore exposed to risks related to equity, emerging markets, concentration, smaller companies, PRC tax, liquidity and derivatives. The Fund has exposure to the China A-Share market via the Shanghai-Hong Kong Stock Connect and/or Shenzhen-Hong Kong Stock Connect (collectively, the “China Connect”) and/or Qualified Foreign Investor (“QFI”) status. Investors will be subject to the risks associated with QFI, China market, application of QFI rules, RMB currency, China Connect and investments in stocks listed on the Small and Medium Enterprise Board and/or the ChiNext Board of the Shenzhen Stock Exchange and/or the Science and Technology Innovation Board of the Shanghai Stock Exchange risks. RMB is currently not freely convertible and RMB convertibility from offshore RMB (CNH) to onshore RMB (CNY) is a managed currency process subject to foreign exchange control policies of and restrictions imposed by the Chinese government. There can be no assurance that RMB will not be subject to devaluation at some point.
- Investors may be subject to substantial losses.
- Investors should not solely rely on this document to make any investment decision.
JPMORGAN CHINA PIONEER A-SHARE FUND
- The Fund invests primarily (at least 70%) in People’s Republic of China (“PRC”) equity securities, including but not limited to China A-Shares listed on the PRC stock exchanges (e.g. Shanghai Stock Exchange and Shenzhen Stock Exchange).
- The Fund is therefore exposed to risks related to equity, emerging markets, concentration, smaller companies, PRC tax, currency, liquidity hedging and derivatives. The Fund has exposure to the China A-Share market (including PRC exchange traded stock index futures) via the Shanghai-Hong Kong Stock Connect and/or Shenzhen-Hong Kong Stock Connect (collectively, the “China Connect”) and/or Qualified Foreign Investor (“QFI”) status. Investors will be subject to the risks associated with QFI, application of QFI rules, China market, PRC brokerage, RMB currency, China Connect and investments in stocks listed on the Small and Medium Enterprise Board and/or the ChiNext Board of the Shenzhen Stock Exchange and/or the Science and Technology Innovation Board of the Shanghai Stock Exchange risks. RMB is currently not freely convertible and RMB convertibility from offshore RMB (CNH) to onshore RMB (CNY) is a managed currency process subject to foreign exchange control policies of and restrictions imposed by the Chinese government. There can be no assurance that RMB will not be subject to devaluation at some point.
- Investors may be subject to substantial losses.
- Investors should not solely rely on this document to make any investment decision.
JPMORGAN FUNDS - CHINA FUND
- The Fund invests primarily in companies of the People’s Republic of China (“PRC”).
- The Fund is therefore exposed to risks related to equity, emerging markets, concentration, smaller companies, investments in the PRC, PRC tax risk consideration, QFII, RQFII, the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, stocks listed on the Small and Medium Enterprise Board and/or the ChiNext Board of the Shenzhen Stock Exchange and/or the Science and Technology Innovation Board of the Shanghai Stock Exchange, participation notes, currency, RMB currency, liquidity, derivative, hedging and class currency.
- The Fund may at its discretion pay dividends out of capital. The Fund may also at its discretion pay dividends out of gross income while charging all or part of the Fund’s fees and expenses to the capital of the Fund, resulting in an increase in distributable amount for the payment of dividends and therefore, effectively paying dividends out of realised, unrealised capital gains or capital. Investors should note that, share classes of the Fund which pay dividends may distribute not only investment income, but also realised and unrealised capital gains or capital. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any dividend payments, irrespective of whether such payment is made up or effectively made up out of income, realised and unrealised capital gains or capital, may result in an immediate reduction of the net asset value per share. Also, a positive distribution yield does not imply a positive return on the total investment.
- Investors may be subject to substantial losses.
- Investors should not solely rely on this document to make any investment decision.
JPMORGAN FUNDS - GREATER CHINA FUND
- The Fund invests primarily in companies from the People’s Republic of China (“PRC”), Hong Kong and Taiwan.
- The Fund is therefore exposed to risks related to equity, emerging markets, concentration, smaller companies, investments in the PRC, PRC tax risk consideration, QFII, RQFII, the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, participation notes, currency, RMB currency, liquidity, derivative, hedging and class currency .
- The Fund may at its discretion pay dividends out of capital. The Fund may also at its discretion pay dividends out of gross income while charging all or part of the Fund’s fees and expenses to the capital of the Fund, resulting in an increase in distributable amount for the payment of dividends and therefore, effectively paying dividends out of realised, unrealised capital gains or capital. Investors should note that, share classes of the Fund which pay dividends may distribute not only investment income, but also realised and unrealised capital gains or capital. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any dividend payments, irrespective of whether such payment is made up or effectively made up out of income, realised and unrealised capital gains or capital, may result in an immediate reduction of the net asset value per share. Also, a positive distribution yield does not imply a positive return on the total investment.
- Investors may be subject to substantial losses.
- Investors should not solely rely on this document to make any investment decision.
JPMORGAN CHINA INCOME FUND
- The Fund invests at least 70% in (a) equity securities of companies which are based in, listed on any stock exchange of, or operate principally in the People’s Republic of China (“PRC”) and that the Investment Manager expects to pay dividends and (b) Chinese debt securities issued and/or distributed in or outside the PRC.
- The Fund is therefore exposed to risks related to dynamic asset allocation strategy, equity, debt securities (including valuation risk, credit risk, investment grade bond risk, below investment grade/ unrated investment risk, interest rate risk and sovereign debt risk), concentration, smaller companies, “Dim Sum” bond market, emerging market, PRC tax, currency, liquidity, derivatives, class currency and currency hedged classes. The Fund has exposure to PRC securities (including PRC exchange traded stock index futures) via the Shanghai-Hong Kong Stock Connect and/or Shenzhen-Hong Kong Stock Connect (collectively, the “China Connect”), Qualified Foreign Investor (“QFI”) status, China interbank bond market (“CIBM”) Initiative and/or Bond Connect. Investors will be subject to the associated QFI, China market, PRC brokerage, RMB currency, China Connect, investments in stocks listed on the Small and Medium Enterprise Board and/or the ChiNext Board of the Shenzhen Stock Exchange and/or the Science and Technology Innovation Board of the Shanghai Stock Exchange, and CIBM risks. RMB is currently not freely convertible and RMB convertibility from offshore RMB (CNH) to onshore RMB (CNY) is a managed currency process subject to foreign exchange control policies of and restrictions imposed by the Chinese government. There can be no assurance that RMB will not be subject to devaluation at some point.
- Where the income generated by the Fund is insufficient to pay a distribution as the Fund declares, the Manager may at its discretion determine such distributions may be paid from capital including realised and unrealised capital gains. Investors should note that the payment of distributions out of capital represents a return or withdrawal of part of the amount they originally invested or from any capital gains attributable to that original investment. Any payments of distributions by the Fund may result in an immediate decrease in the net asset value per unit. Also, a positive distribution yield does not imply a positive return on the total investment.
- Investors may be subject to substantial losses.
- Investors should not solely rely on this document to make any investment decision.
JPMORGAN FUNDS – CHINA BOND OPPORTUNITIES FUND
- The Fund invests primarily in onshore CNY-denominated debt securities and offshore CNH- or USD-denominated debt securities issued by Chinese issuers.
- The Fund is therefore exposed to risks related to currency, debt securities (including interest rate, below investment grade/unrated, investment grade, sovereign debt, valuation, credit, volatility and liquidity), emerging markets, concentration, active currency position, derivatives, PRC market, RMB currency, “Dim Sum” bond, China interbank bond market (“CIBM”), PRC tax, hedging, class currency and currency hedged share classes . For currency hedged share classes, the currency hedging process may not give a precise hedge and there is no guarantee that the hedging will be totally successful. For “(irc)” share classes, they may have greater capital erosion, and their NAV may fluctuate more and be significantly different to the other share classes. Investment in RMB hedged share class is subject to risks associated with the RMB currency and currency hedged share classes risks. RMB is currently not freely convertible and RMB convertibility from offshore RMB (CNH) to onshore RMB (CNY) is a managed currency process subject to foreign exchange control policies of and restrictions imposed by the Chinese government. There can be no assurance that RMB will not be subject to devaluation at some point.
- The Fund may at its discretion pay dividends out of capital, giving priority to dividends rather than capital growth. The Fund may also at its discretion pay dividends out of gross income while charging all or part of the Fund's fees and expenses to the capital of the Fund, resulting in an increase in distributable amount for the payment of dividends and therefore, effectively paying dividends out of realised, unrealised capital gains or capital. Investors should note that, share classes of the Fund which pay dividends may distribute not only investment income, but also realised and unrealised capital gains or capital. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor's original investment or from any capital gains attributable to that original investment. Any dividend payments, irrespective of whether such payment is made up or effectively made up out of income, realised and unrealised capital gain or capital, may result in an immediate reduction of the net asset value per share. Also, a positive distribution yield does not imply a positive return on the total investment.
- Investors may be subject to substantial losses.
- Investors should not solely rely on this document to make any investment decision.
Income Strategy
Growth Strategy
J.P. Morgan China Income Strategy
Our China multi-asset and fixed income solutions invest flexibly to capture yield opportunities onshore and offshore.
J.P. Morgan China Growth Strategy
Our China and Greater China equity solutions focus on Greater China stocks to drive quality return potential.
Drawing on a century of experience to go from strength to strength in China
J.P. Morgan has a legacy in China’s financial services industry. Our history in China began in 1921, with the opening of an office by one of our predecessor firms in Shanghai. That laid the foundation of a century of investments, insights and on-the-ground research.
J.P. Morgan Asset Management has established unrivalled investment capabilities for both equities and fixed income. Equity strategies are formulated through disciplined fundamental research coupled with bottom-up selection, whereas fixed income selection benefits from a structured framework to incorporate a global view, market analysis and fundamental research.
Past performance is not indicative of future performance. The ranking is for J.P. Morgan. J.P. Morgan Asset Management is the asset management division of JPMorgan Chase & Co.
^ Source: Z-Ben Advisors “2021 China Rankings” (April 2021).
* Source: Broadridge China Navigator, as of April 2021.
Greater China Team, Emerging Markets & Asia Pacific (EMAP) Equities
- 20 investment professionals (14 of which are Greater China product specific research analysts)
- USD 28.3 billion of AUM
- The first asset manager in Hong Kong to launch a retail QFII fund product in 2006, leading the march to the China onshore market
Asian Fixed Income Team, Global Fixed Income, Currency & Commodities (GFICC)
- >10 investment professionals
- USD 8.8 billion of AUM, allocated across:
Located in Hong Kong, Shanghai and Taipei
Cultivating collaborative partnerships with local experts in China through the sharing of knowledge and insights
AUM: assets under management. Source: J.P. Morgan Asset Management, as of end-March 2021. Includes portfolio managers, research analysts, traders and investment specialists with VP title and above. There can be no assurance that the professionals currently employed by J.P. Morgan Asset Management (JPMAM) will continue to be employed by JPMAM or that the past performance or success of any such professional serves as an indicator of such professional's future performance or success.
Brilliant growth prospect
Technology in everyday life
Technological development is broadening in China with artificial intelligence and cloud computing becoming a part of everyday life. Amid geopolitical uncertainty and facing a decoupling risk with the US, China’s tech industry is embracing an inward economic pivot, looking to reduce its reliance on imported software and hardware.
Rising healthcare demand
The global health crisis has increased demand for healthcare services and products, including healthcare infrastructure, preventive treatment and vaccine development. China’s healthcare industry covers a considerable number of sectors, and spending on such services could continue to grow.
Consumption upgrades
As household income increases and the standard of living improves in China, its middle class is increasingly focused on lifestyle upgrades in both daily necessities and entertainment. Alongside supportive domestic policies, consumption is expected to become a key driver of economic growth.
Income investing advantages
Compelling dividend opportunities
With yields across the curve under pressure in an environment of low or even zero interest rates, it has become more challenging for global investors to find income. In terms of dividend level, China H-Shares look more attractive than those in other markets, offering greater income potential. Within China, sectors including financials, industrials, renewable energy and materials exhibit higher yield and robust earnings growth, offering a potential income foundation.
Dividend level across different regions
Source: FactSet, J.P. Morgan Asset Management, as of end-March 2021. Indices used: MSCI World Index (Developed Markets), MSCI Emerging Markets Index (Emerging Markets), MSCI Europe Index (Europe), MSCI Asia Pacific ex-Japan Index (APxJ), MSCI China H Index (China H-Shares). Yield is not guaranteed. Positive yield does not imply positive return.
Bond yield potential looking appealing
China bonds also offer vast income potential. With developed market government bonds at low or negative levels, China bonds denominated in USD (credit) and CNY (government) may offer yield opportunities more appealing to foreign investors.
Government bond yields across different regions
Source: Bloomberg, J.P. Morgan Asset Management, data of J.P. Morgan Government Bond Index and J.P. Morgan Asia Diversified Index as of end-February 2021. Yield is not guaranteed. Positive yield does not imply positive return.
Yield to Maturity of Asian USD credit
Source: J.P. Morgan, data of J.P. Morgan Asia Credit Index as of 28.02.2021. Yield is not guaranteed. Positive yield does not imply positive return.
Potential diversification benefits
Different segments of China bonds come with distinct characteristics. The onshore market is an enormous segment not to be overlooked, but is skewed to government and government-related issuers. Relatively small in size, offshore bond markets have seen issuers of higher quality in general. When compared with those in Emerging Markets, onshore China bonds exhibit a lower correlation with global aggregate and developed market bonds, while offering relatively attractive risk-adjusted returns.
Relatively low correlation between China and global aggregate bonds
Source: J.P. Morgan Asset Management, Bloomberg, USD return, data from January 2005 to end-February 2021. Indices used: J.P. Morgan Government Bond Index (developed markets shown), J.P. Morgan Government Bond Index – Emerging Market Broad Diversified Index (emerging markets shown, excluding Asia), J.P. Morgan Asia Diversified Index (Asian emerging markets shown, including China onshore) , S&P 500 Index (US equities), CSI 300 Index (China A-Shares), Bloomberg Barclays Global Aggregate Index (Global Aggregate Bonds). Past performance is not indicative of future performance. Investors should note that different asset classes have varying risk/return profiles.
Casting far and wide to capture the growth and income advantages onshore and offshore
Please click fund details for more information, including important information
EQUITIES
JPMorgan China A-Share Opportunities Fund
JPMorgan China Pioneer A-Share Fund
JPMorgan Funds – China Fund
JPMorgan Funds – Greater China Fund
Award-winning strategies
Past performance is not indicative of future performance.
+ Issued by Lipper of Refinitiv, 2021 awards. Equity China awarded to JPM China A (dist) – USD and Equity Greater China awarded to JPM Greater China A (dist) – USD, reflecting performance as of 31.12.2020. Refinitiv Lipper Fund Awards, © 2021 Refinitiv. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this content without express written permission is prohibited.* Morningstar Awards 2021 ©. Morningstar, Inc. All Rights Reserved. Awarded to USD (acc) Class based on the fund’s category-relative performance and risk within the Morningstar EAA Fund Greater China Equity Category over 1 year, 3 years and 5 years to 31 December 2020.
Diversification does not guarantee investment returns and does not eliminate the risk of loss. Indices do not include fees or operating expenses and are not available for actual investment. Forecasts, projections and other forward looking statements are based upon current beliefs and expectations. They are for illustrative purposes only and serve as an indication of what may occur. Given the inherent uncertainties and risks associated with forecast, projections or other forward statements, actual events, results or performance may differ materially from those reflected or contemplated. For illustrative purposes only based on current market conditions, subject to change from time to time. Not all investments are suitable for all investors. Exact allocation of portfolio depends on each individual’s circumstances and market conditions.