International research

- Russia and China, the world's two largest neighbours in terms of land and population, have many natural synergies and are en route to becoming a powerful trading bloc. China is already Russia's foremost trading partner
- As a fast-growing economic power, China needs resources and is increasingly turning to Russia, the closest and one of the richest providers of raw materials
- Russia needs financial resources to further develop its infrastructure and natural reserves, and China is an attractive source of financing
- Leading Russian companies with a total capitalisation comprising about half of the Russian equity market have been benefiting from evolving Sino-Russian cooperation in the energy sector as well as from growing overall trade and economic ties
- The Russian equity market, with single-digit forward P/E valuations, can increasingly be viewed as a leveraged play on Chinese economic growth, given strong domestic consumer demand and a burgeoning new middle class.