From Morningstar: 2024-04-26 11:54:00

Morningstar is backing investment in China despite foreign investors pulling out due to geopolitical risk. Associate Portfolio Manager Nicolo Bragazza explains that China offers attractive valuations, profit margin upside, and strong growth potential in sectors like communication services and consumer discretionary companies. The country is also seen as a key player in the future of artificial intelligence and electric vehicles. Geopolitical tensions may impact China’s status as a top manufacturer, but long-term realignment of supply chains will take time. While China leads in electric vehicle technology, tech companies with high margins are still preferred for investment.



Read more at Morningstar: Downside Over? 5 Reasons to Buy Back into China