The time is right for Canadian investors to diversify into China and emerging markets
Wenchang Ma is a portfolio manager with Ninety One.
Canadian investors are no strangers to diversification. Yet portfolios remain heavily weighted toward developed markets and domestic resource sectors. In a world where global growth drivers are shifting, this creates a structural gap. China’s economic transformation, and the broader evolution of emerging markets, may offer precisely the type of long-term, diversified exposure Canadian investors need.
For much of the past decade, China was considered the growth engine of emerging markets, only to fall short of expectations in recent years. Investors endured lacklustre equity returns, policy crackdowns and persistent geopolitical headwinds. Between August, 2021, and August, 2024, the…
