Will 2026 be China’s year?

At the start of every new year, investors wonder whether this will be the one that marks the end of US exceptionalism. It looked possible following the fallout from President Trump’s ‘Liberation Day’ measures, but the US market recovered and is back in reasonable health once again. However, fears of a perceived artificial intelligence (AI) bubble and ongoing policy uncertainty have prompted investors to consider opportunities elsewhere. China performed above expectations last year, supported by policy support and improved earnings across a handful of sectors. The MSCI China Index returned 23.5%...