China A: Bigger Than Expected
The Chinese A share market is the second largest in the world. It is also the most under-owned equity market.
China A: Right Here, Right Now
MSCI is in the process of adding Chinese A shares to the MSCI Emerging Markets Index (EM) at 5% inclusion factor in 2018. MSCI projects that at full 100% inclusion, Chinese A shares would represent 17% of the Index.
Accessing China: QFII vs. Connect
Over the last few years, the Stock Connect program replaced QFII as the main access route for onshore Chinese equities.
Will the Size Premium Persist in China?
Equity markets are always evolving. A change in the mix of market participants, a change in the behavior of market participants or regulatory changes resetting ‘rational calculus’ can all result in market evolution.
Current Opportunities in EM:
Value or Momentum?
Global equity markets experienced a dramatic and sharp sell-off in March, followed by a sharp rebound in April.