TCOM - Harding Loevner Chinese Equity Q4 2024 Report

2025-02-18 21:50:00 ET

Summary

• The MSCI China All Shares Index declined 6.9% in the quarter as persistent weakness in consumer spending and retail sales continued to dampen sentiment.
• The Harding Loevner Chinese Equity composite fell 9.1% gross of fees in the fourth quarter, trailing the 6.9% fall of the MSCI China All Shares Index.
• Some high-quality Chinese firms still possess attributes conducive to long-term growth, including robust market positions, scalable operations, and the ability to capitalize on evolving industry dynamics.
• We remain focused on companies that possess these characteristics, confident that their share prices, over time, will reflect the quality of their businesses.

What Happened

The MSCI China All Shares Index declined 6.9% in the quarter as persistent weakness in consumer spending and retail sales continued to dampen investor sentiment. Donald Trump's election in November led to increased uncertainty regarding US-China trade, particularly due to threats to raise tariffs on Chinese imports. For the full year, the Chinese market rose 16.7% after three years of declines as the government continued to boost policy support....

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