Monetary easing from the People’s Bank of China (PBoC) has added liquidity, a condition investors often correlate with stronger share price performance. “Government intervention has played a central role in restoring investor confidence. In late 2024, China introduced its largest stimulus since Covid-19, with further substantial fiscal support announced that could be deployed in 2026 or sooner,” says Yeo, who is the firm’s head of investment, CIO office and portfolio manager, Fullerton China Equities.
China’s equities are back on institutional radars, as portfolio managers point to an economy tracking a 5% GDP path into 2025, firmer industrial output and a rebound in consumer spending — factors that they say can support higher equity returns as liquidity improves and sentiment recovers.
From the perspective of Fullerton Fund Management’s Grace Yeo, investors are recognising the opportunities presented by improved macroeconomic strength, attractive valuations, favourable government policies and dynamic companies.
