Emerging markets: on the road to Asia

After a two-year drop in the Chinese stock market, indicators are turning positive again. The country has ended moves to tighten its regulation, introduced aid measures for the real estate sector and finally lifted its “zero-Covid” policy, a sign of renewal for its domestic demand, strongly supported by Beijing’s policy.


The excess savings built up by Chinese consumers over three years of lockdowns and the recovery in the job market, which was severely affected by the health situation, should contribute to the consumer spending recovery.

And China has many companies geared towards domestic consumption, such as:

• Anta Sports, the national sports equipment brand, which is gaining market share from multinational sports brands;

• Miniso, the low-cost retail chain specializing in Chinese household and consumer goods, which is not well known by investors despite having more than 5,000 stores across the world³.

The impact of China’s reopening will spread beyond its borders. Hit by the global economic slowdown in 2022, South Korean equities are also trading today at attractive valuations, especially in the new technologies and semiconductors sectors.

For several decades, South Korea has stood out for its innovation in the electronics industry and new technologies. The country is home to a number of world leaders that are suppliers of consumer goods, such as screens for smartphones, and other high value-added electronic components, such as semiconductors⁴:

• Samsung Electronics, the world’s leading producer of technological components (mobile communication equipment, semi-conductors, new screens and consumer electronics and household appliances), has had a number one position in memories for telephones since 1993⁵;

• LG Chem, one of the world’s leading producers of batteries for electric vehicles (EV) with a share of more than 20% of the global market⁶, thus playing a key role in the energy transition.