Chinese equities curb losses better than global peers
Chinese equities have proved more resilient than other large economies as overall they have lost the least over the last month and the financial year to date, despite volatility caused by COVID-19 according to Frontier Advisors.
Data from Frontier found Chinese equities outperformed US, Japan, UK, and European equities with a loss of 4.5% over the last month, and a loss of 7.7% over the financial year to date.
Japanese equities followed with a loss of 9.9% over the month and a loss of 9.7% over the financial year to date. The worst-hit region over one month was European equities which lost 16% while UK equities lost the worst over the financial year at 21%.
The number of COVID-19 cases in China has decelerated and economic activity in the country shows some signs of improvement in March with purchasing managers’ index (PMI) data rebounding from a record low PMI.
“Retail data show sales were down 20% in February, and while there has been signs of an increase in activity over March, they remain below typical levels,” Frontier said.
“Authorities eased credit conditions in an attempt to avoid large increases of unemployment and nonperforming loans that would subsequently impact heavily on economic conditions.
“China’s coal consumption remains 20% below the usual average for this time of year.”
Frontier noted the key area to watch in coming months would be whether or not a new wave of infections occurred as quarantine measures were relaxed as infection rates slow.
On the domestic side, the ASX 300 lost 20.8% over the month and 20.9% over the financial year to date.
Recommended for you
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
