Author: Tim Davies

China’s Third Plenum has had limited coverage in the Western financial media despite containing what Carrara considers several significant policy shifts – especially given the impact that the Chinese economy has on global markets. This note breaks down the event’s policy agenda into the key areas that may have an impact on global markets and hence investment portfolios.

The purpose of this report is to provide a detailed overview of the semiconductor supply chain to help investors better understand of the different segments and components that go into making a chip. Additionally, we would like you use this as an opportunity to demonstrate how and where Carrara Capital are investing to take advantage of this attractive opportunity.

The resurgent dominance of China in the global ‘critical minerals’ supply chain is a growing concern for western countries. Until alternate supply chains can be developed – likely a 10+ year challenge – China holds significant and increasing leverage over the US and Europe. The scale of the impact on global markets is both underappreciated and rapidly unfolding, yet it is crucial for investors to understand the full landscape to make informed decisions.

Is the current ‘fear’ for Chinese equities warranted or does it present an attractive buying opportunity? Stepping back from the political rhetoric and negative news flow, we focus on the financial data underpinning China’s 5 leading technology companies compared to their US peers.

Tim Davies of Carrara Capital shares his views on China’s current economic situation and its flourishing equity market. Despite slower than anticipated growth, Davies suggests that the Chinese government’s measured fiscal reaction is deliberate