2021-10-26-Invesco-2021年全球投资者对投资中国的态度调查报告（英）_42页_1mb

China Position 2021: Sustaining Institutional Interest

Overview

This report explores the evolving institutional investment stance toward China in 2021. Despite significant global challenges, including US-China trade tensions, regulatory shifts, and the COVID-19 pandemic, institutional investors largely maintained or increased their exposure to China.

Key Findings

1. Positive Outlook: 60% of surveyed asset owners expect better economic conditions in China relative to the global economy over the next 12 months, albeit slightly down from 2019 (nearly 75%).
2. Increased Risk Appetite: Over half (54%) reported an increased risk appetite regarding China exposure due to COVID-19. Most US-China trade tensions were expected to moderately or significantly influence asset owners to increase exposure.
3. Growing China Exposure: 84% of respondents saw no change or an increase in their risk appetite regarding China. 50% reported increased exposure or holdings over the past 12 months, and 64% plan further increases in the next 12 months.
4. Growth in Tech & Other Sectors: Technology innovation (including AI, 5G, EVs, IoT, Cloud Computing) remains the top investment sector, followed closely by financial services and healthcare/medical/natural health themes.
5. Stated Preference for Direct/GCC Allocations: A majority (over 50% of asset owners surveyed via desk research) plan to increase direct investments or carve out dedicated China allocations beyond thematic vehicles.
6. ESG Integration Growing: ESG investing significantly influences China allocation decisions. 62% of survey respondents "always or often" adopt ESG investing with China exposures, and two-thirds linked increased exposure to ESG goals. Biennial is required to be relatively low by 2025, at $10,549 per person (similar to the US in early 1980s).
7. Challenges Remain: Concerns persist regarding lack of regulatory transparency, corporate reporting, standardization and verification of ESG data, and trust.
8. Regulatory Impact: Mid-2021 regulatory actions targeting large consumer internet and education companies caused market turbulence.
9. Potential Returns vs. Risk: Many survey respondents expected reasonable annual returns (10-15%) despite China being considered an "emerging" market by some. Investment risk was assessed relatively high compared to other emerging markets, but still attracting major G7 countries as key competitors. Exchange rate fluctuation (RMB depreciation) is viewed by some as a risk, though a majority expect growth.