Due diligence in emerging markets: How China's lockdowns are affecting manager research

Face-to-face meetings important

Many investment managers we research place importance on the access that they have to company management and the insights they gain from making company visits.

This may be to, gain an understanding of the strategic direction of the business; build relationships with company management for engagement; or expand understanding of how management think and their approach to capital allocation. However, with China experiencing numerous zero-Covid lockdowns, the emphasis of on-the-ground evaluation, and the extent to which this provides value over virtual communication, has been tested. Deep Dive: Long-term prospects for China remain bright despite continued uncertainty The current economic climate in China is one driven by a multitude of unnerv...