Chinese equities: A false dawn or the new 'safe haven'?

It has almost gone unnoticed, but Chinese indices have begun to outperform amid a difficult August for equity investors.

At first glance, the very idea of Chinese equities being a store of value during a period of market turbulence seems illogical in the extreme. A volatile asset class, the broad-based flight from emerging markets and wider concerns over the state of the Chinese economy does not sound like a recipe for success. But, surprising as it may seem, Chinese equities have managed to outperform quite considerably over the short term, as Psigma Investment Management CIO Tom Becket has noted. "Our investments in China have recently recovered very well from their distressed valuation levels at t...