Five reasons for a standalone allocation to China
China is too large and the opportunities too compelling for it to be treated merely as a partial allocation in a generic Emerging Markets strategy. Here are five reasons why:
1. China is driving the global economy.
1. China is driving the global economy.
Despite a minor slowdown in 2019, China is where the growth is, contributing 33% of total global GDP in 20191
2. China鈥檚 markets are some of the largest on earth
2. China鈥檚 markets are some of the largest on earth
China鈥檚 markets are so large that they deserve a standalone allocation, in the same way investors do to the UK, Japan, and Germany2
3. And China鈥檚 markets are becoming more accessible
3. And China鈥檚 markets are becoming more accessible
Stock and Bond Connect programs have opened up onshore markets. Overseas equity investors put RMB 125,4bn to work in China鈥檚 equity markets in Q1 20193
4.聽Offering benefits for investors
4.聽Offering benefits for investors
Three attractors stand out
5.聽And strategic positioning for the future
5.聽And strategic positioning for the future
As new growth drivers from technology and consumer sectors propel China鈥檚 economy
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