Views from the AllianzGI Asian Equity team on whatr's happening behind the headlines in China.
It’s hard to keep track of all the trade-related headlines on China these days. The latest is the recent announcement of US tariffs on an additional USD 200 bn of Chinese exports, and subsequent retaliatory measures from China, which have again dampened investment sentiment. Of course, when the two largest economic powers which have contributed over half of global growth each year since 2002 and become increasingly inter-connected – Xi Jinping’s own daughter attended Harvard – come to blows, then investors will be understandably nervous. But in our view it’s too easy to blame this single factor when explaining why China equity markets have underperformed this year.