Investors Flocks to China as Inflation Erodes Returns in Other Markets

Investors are flocking to China at the start of 2022 seeing it as a heaven from inflation and growth.

Although last year returns in China got eroded by Beijing’s regulatory and policy measures, fund managers are pouring money into mainland equities and bonds betting on China’s stability pledges, monetary and fiscal easing.

David Dali, head of portfolio strategy at Matthews Asia, China is the “single favorite country” in 2022 among the roughly 30 investible emerging equity markets.

“We believe Chinese valuations are some of the least risky and most attractive of all major markets,” Dali said.

He also citing factors including lesser regulatory crackdown, government’s commitment to stimulate the economy and political mandate to maintain stability in the country is widely expected.