Global Equities
Notes from the field: Fall 2021

Observations from Capital Group analysts around the world.

China’s investors are turning to mutual funds.

Mutual funds are becoming more popular in China as investors there grow increasingly comfortable with global investment standards. Previously, investors in the world’s most populous nation favored direct investment or the so-called shadow banking sector, where their deposits were difficult to track or quantify. This shift could prove to be a boon for local banks and exchanges.

Infrastructure plans are driving sales of mining equipment.

With the U.S. poised to approve a new round of infrastructure and road repairs, mining companies are scrambling to fill out their inventories of raw materials used in large projects. Mining equipment manufacturers have reported higher sales for machines and goods used in mineral exploration — an indicator that miners may be attempting to secure new sources of iron and other critical minerals ahead of any new funding.

Mexican tourism companies could have a post-pandemic growth spurt.

As it did in so many parts of the world, the COVID-19 pandemic decimated Mexico’s tourism industry. However, business is roaring back to life as travelers flock to resorts, with international traffic already near 2019 levels. That’s good news for the industry, but it’s accompanied by a unique growth opportunity for individual companies: Many businesses, including one of Mexico’s airlines, were forced to close during the pandemic, leaving market share up for grabs.

Indian staffing agencies could benefit from their home-field advantage.

In fast-moving India, staffing agencies provide prescreened workers for a variety of businesses, such as IT, janitorial services and housekeeping. However, local agencies enjoy a distinct cost advantage over their large, global competitors. And given new regulations designed to force small, off-the-record businesses into tax and legal compliance, the large homegrown players have a favorable position that could translate to years of growth.

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Global Equities
Fall 2021 Quarterly Insights

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