Singaporean perspective to Asian investing
18 Aug 2020

Capture the Best of China Markets


China which reported an average of 4000 new COVID cases in early February is also one of the first countries to contain the virus. We have seen strong recovery signs recently demonstrated by encouraging retail sales, traffic count and local tourist figures. We maintain our conviction on China equities and believe the recovery will be driven by domestic-centric and new economy sectors like e-commerce, technology, insurance companies, discretionary luxury goods, etc. Investors may consider participating in China Equities through a fund with the flexibility to invest in Chinese businesses listed in any markets and a focus on the domestic new economy. 

UBS All China ++++

What are the Key Characteristics of this fund?

  • An unconstrained China Equity portfolio investing in 25-50 best ideas irrespective of their listing location, onshore or offshore.
  • Strong bias to “New China” sectors (Consumer, IT, Healthcare) which are set to benefit from China’s reform. Small exposure to Material, Industrial & Energy (predominantly state-owned) because management interests are often misaligned with that of shareholders.
  • Stock selection heavily depends on bottom-up research, which allows them to discover quality off-benchmark or mid-small cap names.

Why this Fund? 3 Reasons:

  1. Flexibility: The opening up of the onshore equity market allows international investors to further expand their investment universe in China. A strategy with no hard limit on stock listing locations allows the PM to seek for the best ideas across all China markets.
  2. Credible team: Veteran PM Bin Shi who has impressive track records in running UBS China Opp and UBS China A Opp. He is supported by a resourceful team of analysts based in Hong Kong as well as a team from an onshore joint venture.
  3. Process: Alpha generation is driven by in-depth fundamental research, which results in a portfolio with low turnover and high active share.

Article credit: Fund Selection Team
Photo credit: Unsplash 


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*All investments come with risks and you can lose money on your investment. Invest only if you understand and can monitor your investment. Diversify your investments and avoid investing a large portion of your money in a single product issuer.


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