Andrew Mattock, a portfolio manager at Matthews Asia, told CNBC that investors looking to increase their exposure to artificial intelligence may be overlooking an important component: China, the world’s second-largest economy. Mattock described a strategy that centers on opportunities within that market as a way to complement more conventional AI allocations.
Many portfolios focused on AI are concentrated in U.S.-listed technology companies and chipmakers. Mattock’s proposal, as reported by CNBC, urges investors to consider geographic balance by incorporating exposure tied to China’s economy and markets, which he framed as a potential "missing piece" for those seeking broader participation in the AI rally.
Proponents of a China-focused tilt say it can provide access to different parts of the AI value chain and regional innovation ecosystems. At the same time, investors should weigh the distinctive risks that come with investing in China, including regulatory shifts, market access constraints and geopolitical tensions that can affect valuations and capital flows.
Mattock’s comments come amid heightened investor interest in diversifying AI-related holdings. Financial advisers and fund managers often recommend that clients assess their risk tolerance, investment horizon and the role of international diversification within their portfolios before reallocating toward any specific country or sector.
As the market for AI continues to evolve, portfolio strategies that incorporate multiple geographies are likely to attract attention. Investors considering increased exposure to China for AI-related reasons should conduct due diligence or consult professional advisers to understand the potential benefits and pitfalls of such an allocation.