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When we talk about investing in New China,
we're basically talking about the types of businesses
and industries that are tied to where the population of China
are choosing to spend their money.
Historically, when you think about Chinese equities,
a lot of it was dominated by heavy industry, infrastructure
spending, manufacturing.
What we've seen in the last decade or so
is a real push from the Chinese government and authority
to transition their economy away from being
manufacturing-led towards being service-led.
So what do we mean by service-led?
China is fortunate to have a very strong
demographic backdrop--
1.4 billion people.
They are 1.4 billion consumers.
They're earning more money and they're
able to choose and demand where they spend that money.
And what that's seen is the development
of an awful lot of industries that,
to us, offer strong long-term return potential.
The likes of e-commerce and internet
as more and more Chinese live their lives
through their smartphone.
Health care as people have that bit more money
and look to look after themselves and their families.
Technology.
China is, you could argue, getting
close to the cutting edge of renewables
and electric vehicles.
These are the types of names that, to us, assuming
the economics and the duration are right, really
offer strong long-term opportunity with the added
benefit to typically having less government involvement.
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Why JPMorgan China Growth and Income?
Well, this is an incredibly complex market
to navigate for an individual investor.
There's the language, there's the culture,
there's the time zone.
And there's actually just things like access
to management and corporates.
With JCGI, we have the ability to do all of those things.
Everyone in the team speaks Mandarin.
Why is language so important?
Well, for any of you that have [? used to ?] translate
to order food in a foreign restaurant,
you'll soon realize.
You don't want to make assumptions
when it comes to speaking with management, when it comes
to understanding balance sheets or competitive pressures
on businesses.
It really is about making sure that where possible you
get all the cleanest information in order to make the best
decision on where you invest.
We have people on the ground in Shanghai, in Hong Kong.
And that gives us a real edge because we're not just
relying on headlines or news alerts,
but we're actually able to go out on the street,
see what people are spending, hear
the demand from different businesses
and different corporates.
We've shown that we have the strong ability
to run money in China over 30 years with the history
of this investment trust.
And backing us, we have one of the largest emerging markets
teams and a very clear process that's
focused on quality, that's focused on corporate governance
and the importance of that.
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