Chinese Equity

Our philosophy

• We believe that there is a well-established relationship between profitability and valuation, and that excess market volatility often leads to mispricing of stocks
• Employing rigorous fundamental research, we actively identify and position for mispricing opportunities as we believe market reverts to its intrinsic value over time
• With disciplined investment process and long-term horizon, we seize opportunities and enhance returns by overweighting in profitable companies at below-average valuations
  

Our process

• We utilise our proprietary portfolio management tool to screen out and rank stocks with attractive combination of valuation and profitability from a universe customised to the benchmark
• The top ranked stocks are then thoroughly analysed by our research analysts, who are well supported by not only the global team, but also our domestic joint venture in China
• The most attractive stocks are included in the portfolio using both a bottom-up implementation process and a top-down risk control framework
• Adhering to HSBC's global standard, we constantly monitor and assess the risk of the portfolio and its holdings
  

HSBC strengths

• We have been managing Chinese equities since 1992
• Our investment teams are equipped with deep experience and draw on local market resources, knowledge and insights
• Our China team consists of 2 dedicated portfolio managers with 20 years of average investment experience, a 5-member research team in Hong Kong and a 26-member Chinese equity team from HSBC Jintrust in China
• The core Chinese equity team is further supported by a broad investment network including a 15-member Asian regional team and an 8-member BRIC/GEM team