Should investors adapt their approach to investing in Chinese equities?
The increased popularity of standalone China allocations, and the launch of emerging markets ex China strategies, has amplified the debate over how to allocate to Chinese equities. We assess the key considerations.
Profily autorov
The debate around how investors should allocate to China has grown in recent years. Should they continue to include it as part of a global emerging market (EM) equity allocation, or carve the country out from EM and allocate on a standalone basis?
There are pros and cons to both approaches, each of which may carry greater weight depending on an investor’s objectives and constraints. As such, both have validity, but what’s crucial is that the decision on which path to take is made following an informed assessment.
In this paper we cover the drivers of the China allocation debate, discuss the pros and cons, review the key characteristics of Chinese equities, and highlight the main differences between the EM and EM ex China indices.
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Profily autorov
Témy