Pendal says investors underestimate China’s export strength
FXI•Pendal Group remains overweight China, favoring technology and industrial exporters. China’s trade surplus reached US$1.2 trillion in the 12 months to August 2026, while second-quarter real GDP grew 4.3% year over year.
1. Pendal’s China position
Pendal Group says it remains overweight China, favoring technology and industrial exporters because it sees the country’s export strength as underappreciated by investors.
2. Trade and growth figures
China’s trade surplus rose from US$670 billion in 2021 to US$1.2 trillion in the 12 months to August 2026. Second-quarter real GDP grew 4.3% year over year despite a prolonged property downturn and weak domestic demand.
3. Currency and regional competition
U.S. Federal Reserve analysts estimate the renminbi is 24% undervalued, supporting China’s growing competitiveness in higher-value exports. Pendal’s investment team remains cautious on export-oriented industries in Korea and Taiwan as competitive pressure from China intensifies.
