Wenli Zheng, portfolio manager of T.Rowe Price’s China Evolution Equity Strategy fund, has one tip for investors when it comes to Chinese stocks.

Look beyond the big names like Tencent Holdings, Alibaba Group Holdings and Meituan, he says. Instead, investors should seek opportunities from China’s smaller companies.

Zheng argues that the wide universe of Chinese equities outside its mega-caps contain a significant pool of stocks that are underappreciated.

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