Market volatility has made many people hesitant or doubtful about investing in China. In the past, when China was doing really well and encouraging companies to continue to grow, that argument was easy to make. Over the last 18 months, there has been some doubt.
Our view is that China, as the second largest economy in the world, will continue to be an important member of the global community.
China continues to open up, and Chinese manufacturing continues to narrow the gap.
Chinese companies and entrepreneurs are extremely resilient.
Despite the COVID lockdowns, despite the slowdown, despite the policies, they are still working hard to produce the most compelling products at the most attractive price points.
Our job is to identify those companies that we believe will become stronger, more competitive and more well-known globally. We think there are still a lot of great Chinese companies that have that chance.
We believe that Chinese equities could outperform US equities because a lot of high quality Chinese companies are trading at extremely attractive valuations.
We are fully invested at this point. Everywhere you look, you see companies selling at a huge discount.
If things normalize, we could expect a strong rebound in stock prices.