China AMC highlights industry ‘shake-up’ in strong 2023 performance

Its stocks have performed well this year amidst taking anti-consensus bets.

In the past year, asset management leaders have been faced with challenges concerning global economic shifts, market volatility, geopolitical tensions, as well as regulatory changes. These roadblocks have compelled key industry players to rethink their strategies and approaches in ensuring the resilience and subsequent success of fund firms, more so now that the industry experiences rapid evolution as a response to these situations.

China Asset Management Hong Kong (AMC), one of the leading asset management companies in the area, has recorded a strong performance in the past year despite these challenges. Out of the more than 70 lonely mutual funds focused on Hong Kong and China, the firm’s focus fund has been amongst the best performing funds in the region. This is against a 15% drop in its benchmark index.

Investment Committee Chairman Frank Li noted that in navigating the situation, he likes to do stock picking. Having looked at the Hong Kong and China market for around 30 years, the combination of the top down macro-driven skills and the strong stock picking skills helps him and the company provide a more unique and better service to clients by being able to determine which stocks stand out. He added that this is also what sets them apart from their peers.

“My macro knowledge helps me navigate the macro shifts in terms of international funds flow in terms of macroeconomic trends better than my peers,” Li said.

He attributes this success and capability to his accumulated experience over the years – amongst which was his previous role with research and as a lead macro strategist for a multinational banking firm.

Furthermore, China AMC has also achieved a remarkable performance on several factors. This includes the economy being hit by deflationary pressures, which has led to a large proportion of its portfolio being focused on the high dividend yield sectors. At the same time, it has expressed its willingness to take an anti consensus bet on sectors that have taken a big beating.

Given the performance of these stocks, Li mentioned that the company is benefitting from these “shake-ups” amidst the ability to expand market shares and quick growth of earnings. He hopes that the company’s investment philosophy is going to continue to translate to clients. 

China AMC’s success has been recognised by the Hong Kong Fund Managers Awards, a prestigious ceremony that aims to recognise and celebrate outstanding achievements in fund management, honouring professionals who have demonstrated exceptional performance, strategic acumen, and a commitment to delivering value to investors.