Reported about 1 year ago
Stuart Rae, Portfolio Manager of the Loomis Sayles Emerging Markets Value Stock Fund, stated on July 6, 2024, that while the Chinese market has been quiet in recent years, it still plays a crucial role in emerging markets. With around 25% weight in benchmark indices, this actually underestimates China's true weight, as A-shares only account for 20%. As mature economies control inflation, the situation in emerging markets varies, with China's inflation rate staying low due in part to limited economic stimulus during the pandemic. Other regions like Latin America are gradually seeing decreasing inflation rates. Overall, inflation in emerging markets is on a downward trend, and they are expected to outgrow mature markets in the coming years. Various investment themes beyond China are emerging, including nearshoring in Eastern Europe, large-scale transformation in Saudi Arabia supporting Chinese equipment suppliers, and the Asian tech sector offering opportunities in AI-related supply chain technologies. Despite higher risks, emerging markets present investment opportunities, making proactive research essential for investors to uncover value. Rather than focusing on countries or economies, investors should research individual companies to identify valuable investments like those in India. China appears relatively cheap currently, and investors are looking for potential turning points for more opportunities.
Source: YAHOO