”He will win who knows when to fight and when not to fight"

(True Partner Capital, April 2026, Chicago/Hong Kong)

When US and Israeli forces struck Iran in late February, global markets reeled: oil futures surged 54%, US 2-year Treasury yields jumped 45 basis points, and the S&P 500 fell 8%. Chinese equities, as tracked by the Hang Seng China Enterprises Index, showed notably less drawdown during the conflict than global peers, but have underperformed year-to-date. For True Partner's co-CIOs Govert Heijboer and Tobias Hekster, these developments have only strengthened their China thesis.

In this April update, Heijboer and Hekster revisit their three-pillar case for China. First, valuations: despite comparable expected earnings growth, China's equity markets trade at price/earnings ratios roughly half those of the S&P 500. Second, green energy leadership: China manufactures over 80% of the world's solar panels and wind turbines, is rapidly closing in on US nuclear capacity with nearly as many reactors under construction as the rest of the world combined, and dominates electric vehicles and battery technology, a structural advantage that only grows more relevant as the world accelerates away from hydrocarbons. Third, artificial intelligence: Chinese firms now represent five of the world's top ten large language models, at company valuations that are a fraction of their US counterparts.

The article also examines the growing risks for US equity markets: rising costs for AI capital expenditure, mounting stress in the private credit sector following AI disruption of SaaS providers, and the question of whether equity markets are too sanguine about the energy disruption in the Persian Gulf. Oil futures markets are priced for a swift resolution, yet the physical recovery of major gas facilities in the region is likely to take years.

Against this backdrop, True Partner has developed the Brain of the Dragon (龙脑 - Long Nao) strategy, combining long exposure to Chinese equities with a protective overlay, allowing investors to participate in China's potential with downside protection.

Mr. Hekster: "The English pronunciation of Long Nao is the same as Long Now. We fully agree."

True Partner assist investors with tailored solutions to optimally navigate market turmoil, specifically tail solutions and China opportunities.

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