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
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.
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.
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.