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Brochure: Chinese equities: Bringing its "A" game

The China Equity Primer provides an overview of the China equity investment landscape, with a focus on the developments in China's domestic markets
11 October 2019
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    Key takeaways

    • The sheer size of the China A market: The Shanghai and Shenzhen equity markets trade the A-shares of more than 3,500 companies, with a combined market cap of USD7.8 trillion, eclipsing the USD5.6 trillion worth of market cap in Japan
    • Index inclusion in motion: MSCI has accelerated the increase in China A-shares’ weighting in its flagship benchmarks, in response to Beijing’s efforts to open up its domestic capital market. MSCI will lift the inclusion factor to 20 per cent in November, up from 15 per cent in August and 10 per cent in May
    • Low correlation, better diversification: Chinese equities have also displayed the ability to shrug off negative headlines on the domestic and external front. On a year-to-date basis, the markets have advanced more than 30 per cent this year despite concerns over the ongoing trade dispute and slowing economic growth