Is now the time for investors to return to China and emerging markets? – The National

Is now the time for investors to return to China and emerging markets? – The National

The BRICs are beginning to build momentum again despite Covid-19 challenges





























The latest data shows that China returned to growth in the second quarter, although domestic consumption and investment remain weak. EPA











One investment theme trumped all in the first decade after the millennium, as China and emerging markets powered ahead and played catch-up with the rest of the world.



Everybody was talking about the BRICs, the acronym coined by Goldman Sachs chief economist Jim O'Neill in 2001 for Brazil, Russia, India and China, four sleeping giants that were finally bursting into life.









Despite the global risks ahead, clients should still be positioned to have decent exposure to the Chinese economy.





Fabian Chui





Investors made fortunes but it couldn't last. Vijay Valecha, chief investment officer at Century Financial in Dubai, says the excitement faded after the financial crisis and China and emerging markets have dramatically underperformed over the past decade.



The iShares MSCI Emerging Markets Index has delivered a disappointing average annual return of just 3.27 per cent over the past 10 years, way behind the 9.95