China is in many ways the “odd one out” in the emerging markets category, with poor demographics (a lower fertility rate than even Japan) and many inefficient low-growth companies. In our opinion that dynamic is unlikely to change under the current leadership, as Chinese companies’ focus on shareholder value creation is diluted by other goals such as provincial investment or employment targets. Hence, even during the golden period of Chinese GDP growth, which has likely already finished, Chinese equities delivered disappointing returns to investors. Xi’s Common Prosperity policies are a further headwind for corporate profits. We may see a short-term…