![2019](/content/dam/invesco/invest-china/en/images/hero-image/2496x936/Exper%20Study%20Hero%202x%20.jpg)
2019 Study
Invesco teamed up with Economist Impact to understand how institutional investors invest in China today.
Sponsored by Invesco and written by Economist Impact, this report is a follow up to the 2019 China Position study. Despite headlines of tech and trade tensions or decoupling pressures, asset owners remain considerably invested in China. We explore why.
Over the next 12 months, 60% of respondents in the 2021 survey still expect better economic conditions in China relative to those globally. While that majority does represent a slip from three-quarters of respondents in 2019, it still demonstrates optimism despite a context of trade tensions, regulatory uncertainty and continued pandemic-related headwinds.
Source: The Economist Intelligence Unit; sample size: 200
Covid-19 has increased the risk appetite of over half of survey respondents regarding their China exposure. North American respondents were the most optimistic among the regions, 60% of respondents reported increased risk appetite as a result of the pandemic.
Source: The Economist Intelligence Unit; sample size: 200
Half of survey respondents say exposure to China increased over the past 12 months. Drivers include:
Challenges to investment mainly centre on issues of trust and transparency, such as a lack of trust in corporate reporting, low regulatory transparency and opacity in China’s financial system for foreign investors.
Source: The Economist Intelligence Unit; sample size: 80
Technology innovation and financial services remain the top investment sectors for survey respondents, consistent with the 2019 survey, with healthcare and domestic consumption themes also capturing interest. Likely given a boost from the pandemic, internet or online themes gained the most ground with investors since 2019.
Source: The Economist Intelligence Unit; sample size: 200
ESG investing among asset owners is having a growing influence on China exposures; a majority (62%) of survey respondents always or often adopt ESG investing with their China exposures and two-thirds say their China exposure grew due to ESG goals. Yet respondents still face challenges around ESG data transparency and availability.
Source: The Economist Intelligence Unit; sample size: 200
Chin Ping Chia
Mike Shiao
Freddy Wong
David Chao
Thomas Au
Kevin Chen