Christina Chung from Hong Kong is tasked with finding the most attractive Chinese companies to invest in.
China’s 1.4 billion inhabitants mostly speak Mandarin and so does Christina Chung from Allianz in Hong Kong. She will be taking over responsibility for Danske Invest China from 17 October, as finding the Chinese companies with the greatest return potential requires local, on-the-ground presence and knowledge.
"Christina Chung has headed Allianz’s Chinese equities team since 2005 and has both a deep insight into China’s economy and a solid knowledge of the companies in our portfolio," says Malene Bason, whose job it is to select the best portfolio managers for Danske Invest’s funds.
When Christina Chung puts together her portfolio, she handpicks the individual companies, which means that much of the fund’s performance will depend on stock picking. However, the entire team is also very aware of the risk they are taking on behalf of investors.
"Christina Chung and her team are very focused on risk, which – particularly in a country like China – is a key aspect of selecting equities. Her team consists of analysts who each focus on the macro, sector or company level and all speak Mandarin – an important skill when meeting Chinese business leaders to assess both return potential and risk," says Malene Bason.
Importance of the new economy
The philosophy behind the team’s investment approach is simple. They invest long term and are particularly interested in companies that have been through a rough patch and now have significant turnaround potential.
"Christina Chung at the helm means the fund will become very focused, as she aims to reduce the current 67 companies in the fund to 37 – all chosen on the basis of their long-term potential. The team is also carefully tracking the ‘new economy’ in China, as the country is shifting from an economy focused on exports and investment to economic growth based on consumption and services. This is opening the door to new investment opportunities," explains Malene Bason.