Markets have been volatile in recent months, with periods of uncertainty followed by sharp recoveries. While short‑term movements can be noisy, long‑term outcomes continue to be driven by company earnings and underlying fundamentals. Staying focused on the bigger picture remains as important as ever.
In this edition of our newsletter, we share insights to help cut through the noise. Chiti reflects on his recent trip to China and what he observed on the ground, including how businesses and markets are positioning themselves. We also provide an update on KiwiSaver, along with a snapshot of current market conditions and what has been driving recent performance.
We hope these updates provide useful context and reassurance and help you stay informed and confident as a long‑term investor.If you would like to discuss your current portfolio, retirement planning needs, goals-based investing approach, or any other financial planning matters, please feel free to give our office a call at 09 553 8928 or email us at info@trilogyfs.co.nz.
Chiti’s China trip
I recently visited China and travelled through several major cities, including Beijing, Suzhou, Wuxi, Hangzhou, and Shanghai. What stood out most was the sheer scale and speed of development across the country.
These are not just large cities by global standards; they are mega-urban economies:
Source: worldpopulationreview.com
To put this into perspective, several of these cities individually have populations larger than entire countries, yet they are seamlessly connected and highly efficient.
Infrastructure & Transport
China’s infrastructure development is truly world-class:
Clean Energy & Technology
Another striking observation was China’s push towards sustainability:
The Shanghai Skyline
The highlight of the trip was undoubtedly Shanghai’s skyline. Standing along The Bund and looking across to Pudong, you are met with a breathtaking display of modern architecture: towering skyscrapers, iconic buildings, and a skyline that feels both futuristic and elegant.
By night, the city truly comes alive. The illuminated towers, reflections on the Huangpu River, and the sheer density of high-rise buildings create one of the most spectacular urban views in the world. It is a powerful symbol of China’s rapid growth and ambition.
Overall Impression
China’s development is happening at an extraordinary pace. The world leading level of scale and efficiency is created by a combination of:
While markets will always experience periods of volatility, sustained economic growth has historically supported strong equity market performance over time. If China delivers the level of growth currently expected, this creates a compelling long‑term backdrop for investors.
This is the lens through which we view China today. The bull reflects optimism grounded in fundamentals, not short‑term market moves. Over the next decade, we believe China has the potential to deliver a prolonged bull market as economic growth translates into rising company earnings and shareholder value.Fund managers have taken a similar view and increased their exposure to emerging markets such as China, India, etc.
KiwiSaver changes
With KiwiSaver tax statements now finalised, attention turns to the government contribution and a number of changes that took effect from 1 July 2025.
Over the coming weeks, members who have fallen short of contributing the amount required ($1,048.86) to receive the full government contribution will receive reminders about topping up their contributions to maximise what they are entitled to.
Please ensure you have contributed the full amount to your KiwiSaver to receive the maximum government contribution by 15 June 2026.
Market update
If you would like to discuss your current portfolio, retirement planning needs, goals-based investing approach, or any other financial planning matters, please feel free to give our office a call at 09 553 8928 or email us at info@trilogyfs.co.nz.
We are always happy to help.
Sincerely,
The Team at Trilogy Financial Solutions
