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Matthews Asia: What does Putin’s invasion of Ukraine mean for China’s relationship with Russia, the US and Europe?

Andy Rothman, Matthews Asia

“China’s relations with the West are more important than its relations with Russia, especially in Europe,” says Dr Bobo Lo, independent analyst at the Russia/NIS Center think tank at the French Institute of International Relations (IFRI). On invitation by Asia specialist Matthews Asia, he spoke in a webinar about the consequences the invasion of Ukraine have on China’s relationship with Russia, the US and Europe. Dr Lo, who was Deputy Chief of Mission at the Australian Embassy in Moscow and has met Valdimir Putin several times, was joined by Andy Rothman, investment strategist and China expert at Matthews Asia.

You can subscribe to the full recording of the conversation (57 minutes) between Dr Bobo Lo and Andy Rothman here („How Putin‘s invasion impacts China’s relations with the US and Europe“).

How digital communication can help you to get a better brand awareness and direct customer acquisition

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The question “If you’re not in front of the client, how do you make sure that you are even in the conversation?” has become essential for salespeople over the past two years. The answer is “digital communication”: creating and marketing high-quality content in digital formats are key to raising awareness of one’s brand, attracting new clients and retaining existing ones, even if face-to-face presence is not required. What smaller asset managers in particular need to look out for to make themselves heard in the crush of all those social media posts and webinars, Hagen Gerle explains in the following article for FondsTrends, the information platform of Hauck & Aufhäuser Fund Services PricewaterhouseCoopers Luxembourg and CURE Intelligence about current and future-oriented trends and topics in the fund business.

There really are still some new asset managers who think they can get a personal appointment with the investor’s board in these times,” a sales expert told me on the phone the other day. The complaint sounds familiar to salespeople: Some investment houses still hope to continue their old model, i.e.: participation in investment conferences and personal visits to investors and distribution partners all over the country. But those days are gone.

The alternative, which also seems to have arrived in asset management, is called digital communication. However, in order to be noticed in the throng of social media posts, videos, webinars and online conferences, smaller investment houses in particular need to pay attention to three points: Focusing on a target group, addressing this clientele with relevant content and using fewer but the right channels.

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Matthews Asia: What’s the real meaning of Evergrande, Kaisa and Didi for investors in China?

Andrew Mattock, portfoliomanager at Matthews Asia

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

Matthews Asia: What reflation, deflation and inflation mean for the markets in 2022

Looking ahead to the new year, Robert Horrocks, Chief Investment Officer (CIO) at Asia specialist Matthews Asia, ventures a prediction in favour of the traditionally weaker economies. He believes 2022 is likely to be a year of high inflation: “This generally helps the more vulnerable markets such as Eastern European countries, which have been dominated by the inflationary glow of a fairly moribund core Europe of France and Germany. Countries and regions like Vietnam and Southeast Asia, which have been chronically under-stimulated, should also benefit from China’s reflationary policies.” In his latest video market outlook (“Matthews Asia: CIO Outlook for 2022“) for 2022, Horrocks specifically addresses three areas: reflation of economies, inflation and deflation as long-term trends.

Hazelview Investments: Global REITs can achieve 12-15 per cent returns in 2022 with these real estate investments

Hazelview Investments expects annualized returns of 12-15% for the Global Public Real Estate Securities Market in 2022. This is according to the latestet “2022 Global Public Real Estate Outlook Report” which the investment manager has published now.

“The potential for rent increases in most real estate markets is the highest it has been in over a decade. REITs are able to pass along cost increases resulting in a boost to revenues,” said Claudia Reich Floyd, portfolio manager and Head of Hazelview’s German office. “We anticipate that earnings growth will be the primary performance driver in 2022.”

Property types like logistics in North America, US residential homes, European office REITs, data centers in Japan and Singapore and cell towers should specifically benefit from increases in market rents. They therefore make up Hazelview’s top five investment opportunities for 20022.

Brexit update: Is the British financial industry alive and kicking?

Der Brexit und die Folgen des Nordirland-Protokolls können das Vereinte Königreich noch ganz schön teuer zu stehen kommen. Foto: Hagen Gerle

Covid-19 or not, Brexit or not: the British financial industry is not letting the EU exit, which happened almost a year ago, get it down. New stock exchange rules, sustainability obligations and more jobs in the financial sector are supposed to prove that the industry is alive and kicking. However, the announcements on the Thames have yet to be followed by deeds. And the dispute over the Northern Ireland protocol threatens to undo the painstakingly negotiated Brexit deal, explains Hagen Gerle in this guest article for FondsTrends, the platform of Hauck & Aufhäuser Fund Services S.A. with contributions on current and future-oriented topics in the fund world: Brexit-Update: Britische Finanzszene alive and kicking? (only available in German)

 

Matthews Asia: Three questions for China and its role for climate change

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China was at the centre of both criticism and the search for solutions during the United Nations Climate Change Conference (COP26) that ended yesterday in Scotland. The People’s Republic is the world’s largest emitter of greenhouse gases. Kathlyn Collins, Head of ESG at Asia specialist Matthews Asia, examines in a recent Question and Answer why China’s role in climate change is so important and what the world’s most populous country has already achieved in terms of climate protection.

Matthews Asia: What ‘China Plus One’ means for the recovery of Indian equity markets

Fondsmanager Peeyush Mittal, Matthews Asia

Indian equity markets have proven to be quite resilient – despite the second Covid wave from late March to June, high equity valuations and above-average inflation. Peeyush Mittal of Asia expert Matthews Asia points this out in his latest market commentary („Matthews Asia Insights: What’s on the horizon for India’s markets?”) and explains which three reasons are mainly responsible for the equity recovery on the subcontinent in his view.

Matthews Asia: Evergrande’s difficulties are an idiosyncratic, not a systematic risk of China’s bond market

Teresa Kong, Matthews Asia

The plight of China’s largest property developer, China Evergrande Group, which appears to be struggling to service interest payments to two creditor banks, has not only caused turmoil in the bond markets. “Evergrande’s plight raises critical issues about investing anywhere in emerging markets, not just China,” says Teresa Kong, responsible for all fixed income strategies at Asia specialist Matthews Asia. The Evergrande saga therefore underlines the importance of conducting thorough due diligence on three aspects of good corporate governance when making bond investments, namely accounting, legal and regulatory requirements, she explains in her latest commentary.

 

Matthews Asia: “China’s regulation is doing just what the rest of the world is thinking about but hasn’t gone around to implement.”

Andy Rothman, Matthews Asia

The Chinese government’s intervention in the market for private education providers, as well as its intervention in the planned listings of ride-hailing giant Didi and Ant Group on US stock exchanges, have worried investors worldwide. Many now fear further regulation that could negatively impact listings of Chinese companies. Andy Rothman (pictured), investment strategist at Asia specialist Matthews Asia, and his colleague and Chief Investment Officer Robert Horrocks believe these concerns are only partially justified, as they explain in the following interview.

Read the full commentaries from Andy Rothman here and from Robert Horrocks here.