China’s economy has been grappling with headwinds in recent years, including strict COVID-19 lockdowns and a slowing real estate market. However, according to Ben Bennett of LGIM, these challenges should not deter investors from considering opportunities in the Chinese market.
Bennett believes that China’s long-term growth trajectory remains intact, driven by factors such as a large and increasingly affluent consumer base, a growing middle class, and government initiatives to promote innovation and technology. He also points to China’s strong savings rate and its ability to generate its own growth through domestic consumption.
While it is essential to be aware of the risks associated with investing in China, such as geopolitical tensions and regulatory changes, Bennett emphasizes the importance of taking a balanced and long-term view. He encourages investors to diversify their portfolios and to invest in companies that are well-positioned to benefit from the country’s growth opportunities.
