Head of Global Equity Strategy

Key takeaways

  • The Chinese government has changed its policy tone to promote Chinese growth and stabilize the economy in the face of U.S.–China trade war tensions.
  • China has the fiscal and monetary policy flexibility to support a gross domestic product (GDP) growth target of approximately 6.5%. We believe this should support continued Chinese corporate earnings growth, which would be beneficial for emerging-market (EM) equities.

What it may mean for investors

  • Trade war rhetoric has dominated the summer season. Yet, we are watching for signs in China—and elsewhere in the emerging markets—that the trade conflict has discounted equity prices to a level at which the upside potential would warrant an upgrade of the EM equity class above our current neutral view.

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