The ongoing uncertainty surrounding the defaulted real estate developer Evergrande and other companies in the construction sector, as well as the Chinese government’s intervention in various industries, are increasingly worrying investors. However, drawing conclusions about the state of China’s economy as a whole from these individual cases falls short, says Andrew Mattock, portfolio manager at Asia specialist Matthews Asia.
In the following interview, Mattock, who is also lead manager of the Matthews China Fund, explains why the regulatory interventions are entirely consistent with China’s reform agenda and why – despite short-term volatility and challenges for certain sectors – China remains a long-term opportunity for investors, as he explains in his latest market comment: Evergrande, Didi and the Bigger China Story
