Increased Access to the Chinese Stock Market
China’s equity market has already been one of the best performers of 2019, as U.S.–China trade negotiations continue. In response, now may be the time to reassess the Chinese equity exposure in your portfolio.
In our view, the top considerations include:
- Trade: A trade deal with the U.S. may take place before the June G20 meeting
- Financial conditions: The Fed’s recent pause in rate hikes, coupled with policy stimulus from Beijing, may provide a helpful tailwind
- Valuations: Chinese equities are still trading at some of the steepest discounts to U.S. equities that we’ve seen since 2016
- Benchmarks: Chinese A-shares may continue to increase in weight in investor portfolios over the coming years as China liberalizes market access
Commentaries from Our Thought Leaders
What's Performing in China?
By Alejandro Saltiel, CFA
While we remain optimistic that a U.S.–China trade deal will ultimately be reached, investors need greater transparency into what’s performing (or not) in the Chinese equity market. To help, we’ve created tools that break down performance by a variety of factors including share class.
How to Access China in 2019
By Kara Marciscano, CFA
This was expected to be the year of the global economic slowdown. But the year-to-date synchronized rally in global equities has stolen the spotlight. So far, Chinese equities have been the star.
U.S.-China Trade: When vs. What
By Brian Manby
We believe a formal U.S.-China trade agreement is likely to be signed before the G20 meeting in June. In response, investors may want to have a plan in place, as China is simply too large an opportunity to ignore in global portfolios.
How Close Are We to a U.S.–China Trade Deal?
By Jianing Wu
Today marks the 298th day of the U.S.-China trade war. Through examination of both Western and Chinese media reports, we believe a trade deal is likely to occur over the next month. Jianing Wu outlines the progress made and how to position your portfolio.
A Better Approach to Chinese Equities
At the start of 2019, investors debated whether China had the potential to rebound after a challenging 2018. The resounding answer seems to be yes. We believe investors should have a long-term plan for how they’re going to allocate to Chinese equities, and the WisdomTree ICBCCS S&P China 500 Fund may be best positioned to help you capitalize on the opportunities.