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Chinese Equity

Our Chinese equity strategy aims to capture growth opportunities in China and enhance returns by investing in stocks with attractive valuations and prospects.

Our philosophy

  • We believe that there is a well-established relationship between profitability and valuation, and that excess market volatility often leads to mispricing of stocks
  • Employing rigorous fundamental research, we actively identify and position for mispricing opportunities as we believe market reverts to its intrinsic value over time
  • With disciplined investment process and long-term horizon, we seize opportunities and enhance returns by overweighting in profitable companies at below-average valuations

Our process

  • We utilise our proprietary portfolio management tool to screen out and rank stocks with attractive combination of valuation and profitability from a universe customised to the benchmark
  • The top ranked stocks are then thoroughly analysed by our research analysts, who are well supported by not only the global team, but also our domestic joint venture in China
  • The most attractive stocks are included in the portfolio using both a bottom-up implementation process and a top-down risk control framework
  • Adhering to HSBC's global standard, we constantly monitor and assess the risk of the portfolio and its holdings

HSBC strengths

  • We have been managing Chinese equities since 1992
  • Our investment teams are equipped with deep experience and draw on local market resources, knowledge and insights
  • Our China team consists of 2 dedicated portfolio managers with 20 years of average investment experience, a 5-member research team in Hong Kong and a 26-member Chinese equity team from HSBC Jintrust in China
  • The core Chinese equity team is further supported by a broad investment network including a 15-member Asian regional team and an 8-member BRIC/GEM team
Risk Warning
The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Where overseas investments are held the rate of currency exchange may also cause the value of such investments to fluctuate.