Charlie Awdry, China equities portfolio manager, discusses how disruption is playing out in China and the potential disruptive impact of China on global markets going forward.

Key takeaways:

  • There are a huge number of innovative Chinese businesses that are risk takers and are highly disruptive.
  • These disruptive companies are regulated by the Communist Party, however, which dislikes disruption as a perceived threat to the status quo - the tension this creates is often overlooked.
  • The recent inclusion and increasing weights of Shanghai- and Shenzhen-listed China ‘A’ shares in equity benchmarks and the opening up of onshore bond markets to foreign investors will begin to close the gap between China’s influence on the global economy and its representation in global capital markets.