🍪 COOKIE POLICY :  We use cookies on our websites to help make your visits more effective so we'd like to explain more about how and why we use them. Please refer to our cookie policy
 DISCLAIMER :  All information here is for GENERAL INFORMATION only and does take into account the specific investment objectives, financial situation or needs of any specific person or groups of persons. Show More
  • cs@dollardex.com
  • (65) 6220 7890
  • Create my account
DOLLARDEX
    • (65) 6220 7890

  • Home
  • What we offer
    • Referral Campaign
    • Top Performing Funds
  • Tools
    • Performance & charts
    • Fund finder
    • Retirement calculator
  • News
    • Announcements
    • Investment articles
  • FAQs

Asia will continue to prosper, but investors must be discerning

by Aberdeen Standard Investments

 

07 July 2020

Image

 

Asia-Pacific stock markets are recovering as economies reopen, but the road ahead is fraught with risks as the disruptions unleashed by the Covid-19 pandemic mean that some companies will thrive even as others fall by the wayside.

 

As financial distress exposes weaker firms, investors will need to assess opportunities stock by stock.

 

Against this backdrop, Aberdeen Standard Investments – the largest active manager in the UK and one of Europe’s largest investment companies - believes an active, quality-focused approach to selecting equities would continue to be the best way to deliver long-term returns for clients.

 

Asia-Pacific & Key Investment Themes

 

One region favoured by Aberdeen Standard Investments is the Asia-Pacific, which is home to half the world’s population and accounts for nearly half of global gross domestic product. The region is – and will continue to be – the structural engine powering the world economy as rapid urbanisation and income growth create demand for new goods and services.

 

In addition, the Covid-19 pandemic has shown how effective Asia-Pacific governments from China to New Zealand are at dealing with crises compared with their counterparts in the West.

 

While there are risks on the horizon, including slower global growth compared to the days before Covid-19, Aberdeen Standard Investments believes that large and sustained stimuli from governments and central banks will offer continued support to markets.

 

In Asia-Pacific equity markets, Aberdeen Standard Investments believes that growth is best captured by focusing on four key long-term investment theme:

 

(1)   Aspiration: As Asia’s rising affluence propels demand for premium consumer goods, financial services, food and beverage and as well as experiences such as travel.

 

(2)   Digital Future: Where the region’s large number of tech-savvy youth and improving connectivity has translated to growth in areas such as gaming, financial technology and various other internet and cloud-based services.

 

(3)   Tech Enablers: As Asia’s technology supply chains are well positioned for structural growth related to the rollout of 5G mobile services, big data and the Internet of Things.

 

(4)   Building Asia: While much has been said about China’s rapid growth, other Asian countries are also seeing rapid rates of urbanisation and infrastructure development, which will benefit property developers as well as suppliers of materials such as cement producers.

 

China-A & Key Investment Themes

 

Within Asia Pacific, Aberdeen Standard Investments also views China as an attractive investment destination. Capital market reforms, while in their infancy, are moving in a positive direction. Financial reporting and disclosures are also trending to international norms. Importantly, structural growth opportunities abound, especially as they relate to fast-growing premium consumption.

 

There are approximately 3,728 A-shares listed in mainland China. These are renminbi-denominated shares traded on the Shanghai and Shenzhen exchanges. They boast a combined market capitalisation of some US$6.8 trillion as of end June 2020.

 

For decades the onshore market developed in isolation. Few foreign investors followed A-shares. Even today, an unsophisticated local investor base that reacts to domestic rather than external factors, drives this market. As a result, the A-share market tends not to transmit global shocks with the same intensity as markets elsewhere. The onshore market has therefore been an effective way for foreign investors to diversify a portfolio.

 

In China A-Share equity markets, Aberdeen Standard Investments believes that growth is best captured by focusing on four key long-term investment theme:

 

(1)   Spending Switch: Resilient companies benefiting from change in work and consumption patterns following the outbreak of COVID-19. This includes plays on cloud computing, cyber-security, online grocery deliveries and a thermal camera maker.

 

(2)   Higher-End Food & Beverages: With wages on the rise, we see strong prospects in higher-end food and beverage producers including liquor, milk and soy sauce.

 

(3)   Life Insurance: Chinese insurers are improving their mix towards life insurance and away from savings products. Life insurance is under-penetrated, which bodes well for future growth in premiums.

 

(4)   Health and Wellbeing: Rising disposable incomes are driving demand for healthcare products and services. The opportunity set is diverse. Our holdings include a leading hospital; a contract research provider for the pharma industry; and traditional Chinese medicine manufacturers.

 

In Conclusion

 

While stock markets around the world have recovered in recent weeks, there is a lot of value in Asia-Pacific and China-A stocks. Investors could consider looking at this region for investment opportunities.

 

Find out more Aberdeen Standard Pacific Equity Fund and Aberdeen Standard SICAV I – China A Share Equity Fund

 

 

 

YOU MAY ALSO LIKE THIS

 
 

2020 H2 Outlook - the worst could be over, but buckle up for continued volatility ahead

 
 

5 Tech trends accelerated in the post-COVID-19 world

 
 

 

Unearthing China's hidden gems through A-shares

 
 

Dollar-cost averaging: How you can use a regular investment plan to grow your long-term wealth

Aberdeen's Disclaimer

 

Important: This document is not an advertisement and does not constitute or form part of any offer or solicitation to issue, sell, subscribe or purchase any investment nor shall it or the fact of its distribution form the basis of or be relied on in connection with, any contract for the same. The contents in this document are for information, illustration or discussion purposes only and should not be construed as a recommendation to buy or sell any investment product and do not purport to represent or warrant the outcome of any investment product, strategy program or product. Reference to individual companies or any securities or funds is purely for the purpose of illustration only and is not and should not be construed as a recommendation to buy or sell, or advice in relation to investment, legal or tax matters.

Any research or analysis used to derive, or in relation to, the above information has been procured by Aberdeen Standard Investments (Asia) Limited (‘ASI Asia’) for its own use, without taking into account the investment objectives, financial situation or particular needs of any specific investor, and may have been acted on for ASI Asia’s own purpose. ASI Asia does not warrant the accuracy, adequacy or completeness of the information herein and expressly disclaims liability for any errors or omissions. The information is given on a general basis without obligation and on the understanding that any person acting upon or in reliance on it, does so entirely at his or her own risk. Past performance is not necessarily indicative of future performance.

 

Any projections or other forward-looking statements regarding future events or performance of countries, markets or companies are not necessarily indicative of, and may differ from, actual events or results. ASI Asia reserves the right to make changes and corrections to the information, including any opinions or forecasts expressed herein at any time, without notice. No reliance may be placed for any purpose on the information and opinions contained in this document or their accuracy or completeness.

 

This document may not be reproduced in any form without the express permission of ASI Asia and to the extent it is passed on, care must be taken to ensure that this reproduction is in a form that accurately reflects the information presented here.

 

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Bloomberg data are for illustrative purposes only. No assumptions regarding future performance should be made.

 

Aberdeen Standard Investments (Asia) Limited, Registration Number 199105448E

SG-070720-120724-1

dollarDEX's Disclaimer

 

All information here is for GENERAL INFORMATION only and does not take into account the specific investment objectives, financial situation or needs of any specific person or groups of persons. Prospective investors are advised to read a fund prospectus carefully before applying for any shares/units in unit trusts. The value of the units and the income from them may fall as well as rise. Unit trusts are subject to investment risks, including the possible loss of the principal amount invested. Investors investing in funds denominated in non-local currencies should be aware of the risk of exchange rate fluctuations that may cause a loss of principal. Past performance is not indicative of future performance. dollarDEX is affiliated with Aviva but dollarDEX does not receive any preferential rates for Aviva products as a result of this relationship. Unit trusts are not bank deposits nor are they guaranteed or insured by dollarDEX. Some unit trusts may not be offered to citizens of certain countries such as United States. Information obtained from third party sources have not been verified and we do not represent or warrant its accuracy, correctness or completeness. We bear no responsibility or liability for any error, omission or inaccuracy or for any loss or damage suffered by you or a third party (including indirect, consequential or incidental damages) arising in any way from relying on this information.

 

This information does not constitute an offer or solicitation of an offer to buy or sell any shares/units.
This article has not been reviewed by the Monetary Authority of Singapore.

 

Information is correct as of 07/07/2020.

Contact us

  • (65) 6220 7890
  • cs@dollardex.com
  • 6 Shenton Way, OUE Downtown 2
    #09-08
    Singapore 068809
    (Lift access via Level 4 lobby)
  • 8:45 am to 5:30 pm (Mondays to Fridays excluding Public Holidays)
  • Home
  • Login
  • About us
  • FAQs
  • Enquiry
  • Personal Data Protection Policy
  • Terms of use of website
  • Complaints and dispute handling
  • Fund finder
  • RSP
  • dollarDEX investment portfolios*
  • Performance & charts
  • Retirement calculator
  • Investment articles
  • Privacy policy
  • Security and you
  • Cookie policy

Get investment insights to make informed decisions.

Get connected

*dollarDEX investment portfolios are administered by Navigator Investment Services Ltd.

Disclaimer
All information here is for GENERAL INFORMATION only and does not take into account the specific investment objectives, financial situation or needs of any specific person or groups of persons. Prospective investors are advised to read a fund prospectus carefully or may wish to seek advice from a financial adviser before applying for any shares/units in unit trusts or making a decision to purchase an investment product. The value of the units and the income from them may fall as well as rise. Unit trusts are subject to investment risks, including the possible loss of the principal amount invested. Investors investing in funds denominated in non-local currencies should be aware of the risk of exchange rate fluctuations that may cause a loss of principal. Past performance is not indicative of future performance. dollarDEX is affiliated with Singlife but dollarDEX does not receive any preferential rates for Singlife products as a result of this relationship. Unit trusts are not bank deposits nor are they guaranteed or insured by dollarDEX. Some unit trusts may not be offered to citizens of certain countries such as the United States. Information obtained from third party sources have not been verified and we do not represent or warrant its accuracy, correctness or completeness. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons.

All prices and values shown on dollarDEX.com are indicative and is based on prices that is from 2-4 dealing days ago. Fund prices are provided by a third-party and clients should not rely on these prices for decision making. dollarDEX does not guarantee any prices or valuations shown, and accepts no responsibility for their accuracy.

This information does not constitute an offer or solicitation of an offer to buy or sell any shares/units.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

 1999-2025 dollarDEX is owned by Navigator Investment Services Ltd.

Navigator Investment Services Ltd is a subsidiary of Singapore Life Ltd.