Chinese equities have led the recovery since the March downturn, with performance supported by net flows into ETFs (along with other funds).
This performance has been driven by the consumer staples, consumer discretionary, technology and healthcare sectors, which benefitted from the lockdown environment and subsequent market rebound. Technology, in particular, has grown quickly and now competes with the US' long-held position as that market's leader The outperformance of these sectors, relative to traditional investment-led sectors (industrials, utilities, financials and energy) reflect the broader transition underway in China towards a consumer-led economy. Corporate earnings have also proved to be resilient - Chinese ...
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