Weightlifting China – how big will it get?
China is woefully under-represented in investors’ portfolios, given the size of its asset markets and economy. However, improvements in access mean this no longer has to be the case. Index providers are responding and China’s weight in benchmarks is rising. Significant investor inflows are likely to follow – we project $200 billion into both local equity and bond markets and $400 billion into each if they go further. How should investors respond? Benchmark providers are not masters of the universe and being governed solely by their moves in a market like China strikes us as illogical. The opportunity is alive today for investors who want to pursue it.
The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.