Asian equities have lagged their global peers over the last decade on the back of poor earnings per share growth, rising risk premium from geopolitics and regulation and more recently, China’s lacklustre economy. However, a government push for improved governance among listed companies may be gaining momentum across the region which can potentially drive improved shareholder returns and help realise the inherent value in many laggard parts of the Asian equity markets.
Read Asia ex-Japan equities: Prospects for higher returns as corporates ‘value up’