China equities: Optimism amid volatility

Rob Mumford June 22, 2021 China equities have experienced mixed performance in 2021, with increased evidence of tapering, heightened regulatory oversight, US-listed liquidations and credit events. Rob Mumford explains why he is increasingly positive despite the likelihood of ongoing volatility as recovery meets a tighter policy environment. (AF) China's equity market has been held back year-to-date by a series of marginal negatives. These include diverse events such as the start of policy withdrawal, industry reform and regulation, accelerated capital expenditure within the internet platforms (pressuring earnings), a family office liquidation, cool US relations and credit stress. Full-year return expectations are…