TLDR:
– Ping An CIO expects modest returns for Chinese equities in 2024
– Plans to add exposure to domestic venture capital, M&A, and multifamily rental properties
Ping An Group’s investment chief, Benjamin Deng, anticipates a “modestly high single-digit return” for the onshore Chinese equity market in 2024. The insurer plans to invest in domestic private equity, including venture capital and mergers and acquisitions, as well as multifamily rental housing. Deng emphasizes the need for adaptive and agile investment strategies in a dynamic environment and highlights key sectors like new energy, technology, media, telecoms, medical, home appliances, and retirement care. Ping An has a barbell allocation strategy in its stock portfolio, with a focus on high-dividend value stocks and growth stocks.
In response to China’s loosening monetary cycle, Ping An is increasing its allocation to private equity for higher long-term returns compared to bonds, leveraging lower funding costs and a shifting landscape in the private equity market. The company is also expanding its investments in multifamily rental properties in China, aligning with the country’s policy direction and emphasizing the importance of being adaptive in finding investment opportunities in a rapidly changing space.
Overall, Ping An remains optimistic about the investment landscape in China, emphasizing the need for skillful and technical diligence in identifying opportunities across various sectors and asset classes.
