Alibaba’s recent announcement that it plans to split into six units indicates “to us that [the Chinese government] is getting toward the end of the regulatory clampdown on the e-commerce sector,” he says.and liquor giant Kweichow Moutai Co. Ltd.
“The tailwind is behind China,” says Mr. Datta, head of the global quantitative equity team and who oversees Mackenzie Emerging Markets Fund and Mackenzie Emerging Markets Fund II. His funds now have an overweight 36 per cent in Chinese equities based on a bottom-up, stock selection approach. Electric vehicle maker Byd Co. Ltd. ADRHe also likes oil refining giant China Petroleum & Chemical Corp., better known as Sinopec. China’s re-opening should lift oil prices, but the impact of a possible recession is unknown, he says.
That policy objective has been associated mostly with the government’s regulatory crackdowns on the education, entertainment, and technology sectors in recent years. “It’s definitely more of a tactical, cyclical view,” says Mr. Mordy, who oversees portfolios using exchanged-traded funds . But China also needs to show improvements in accounting standards, corporate governance and the overall operating environment in the private sector, he adds. “It has always been a policy-driven market.”