China – an opportunity too big to ignore?

In brief

  • China’s rapid development is recognised as one of the most important shifts in the global economy. As the world’s second largest economy1, China is a major global player and is on a trajectory to rival the U.S.
  • China’s economic surge can be attributed to numerous factors such as large scale capital investment, drastic production growth or increased domestic consumption. However, annual economic growth has not always translated into comparable growth in domestic stock markets2. This could change as the country opens up to foreign investment and lowers barriers to entry.
  • Despite the size and the growth of the market, China is currently under-owned as foreign investors hold just 3%3 of the broad market in China.

₁ Source: World Bank, October 2019. ² Source: MSCI, May 2019. ³ Source: People’s Bank of China, July 2019.

 Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. The investor may not get back the amount originally invested.

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