China has long been the growth engine of the world and is among the countries most progressed with respect to its economic recovery.

The Chinese Government’s interventions within the country’s internet and education industries over July have sparked sharp declines in the share prices of companies that are most directly affected, including some of the larger cap names that comprise mainstream indices such as the MSCI Emerging Markets Index. Within this Note, the Global Equities Research Team provides an overview of the context behind this development and its initial views on the implications for investment strategies.

The trends towards economic ‘de-coupling’ of China from other countries, particularly developed countries, and ‘regionalisation’, often touted as the next phase of globalisation, may be accelerated as a result of the COVID-19 pandemic. In this session, our panel of Asia-based investors will explore the opportunities and risks for China and Asia more broadly of these trends, and the implications for investors.

JANA’s Global Equities Research Team unpacks and discusses the key drivers of market returns over the period and the implications on active manager performance.