In a survey conducted by The Economist Intelligence Unit, institutional investor and asset owner organisations from around the world show strong interest in China.
The China position: Gauging institutional investor confidence is an Economist Intelligence Unit report, comissioned by Invesco. It analyses results from a survey of 411 institutional investor and asset owner organisations (approximately 200 in Europe, Middle East and Africa, 100 in North America, and 100 from Asia-Pacific). The key findings of the survey are as follow:
- A majority (nine in ten) of our survey respondents claim some level of dedicated exposure to China.
- Investments are growing; about half of respondents with dedicated China exposure report their investments have “risen significantly” in the past 12 months.
- Equities are the most-cited way organisations invest in China. Over 60% of respondents with dedicated China exposure report both equities and fixed income onshore holdings.
- Respondents cited improvements to their own China expertise as the top driver for dedicated investment exposure.
- Nearly four in ten respondents say environmental, social and governance (ESG) factors play a role in all of their investment decisions; fewer than three in ten say ESG is particularly important for China investments.
- Chinese asset classes in our survey could see increased investment from foreign organisations over the next 12 months, with respondents highlighting technology, financial services and “new economy” sectors as most attractive.
- Risk assessments are largely even across asset classes, but on a regional split respondents in APAC are more concerned than counterparts in North America or EMEA.
- Respondents are mixed on the impact of US-China trade tensions, with similar numbers expecting a positive or negative effect. But a majority of respondents report that their organisations expect to increase exposure over the next 12 months, regardless of outlook.
- About three-quarters of survey respondents say China’s economy will improve over the next 12 months; about two-thirds say the same for global economic conditions.
Our thanks are due to the following individuals for their time and insights:
- Jimmy Chang, chief investment strategist, Rockefeller Capital Management
- Mark Delaney, deputy chief executive and chief investment officer, Australian Super
- Kevin Wade, chief investment officer, Superannuation Arrangements of the University of London (SAUL)
Download the report for more insights.
