Investors are now able to tap into the Chinese growth opportunity through exchange traded funds that directly hold Chinese A-shares trading on mainland stock exchanges.
On the upcoming webcast, Where can investors find opportunities in China?, Anson Chow, V.P. of Passive Asset Management for Asia Pacific at Deutsche Asset & Wealth Management, and Arne Noack, Exchange Traded Product Development at Deutsche Asset & Wealth Management, discuss the long-term investment case for the Chinese market.
For instance, the emerging market has been enacting a number of economic reforms to develop its local economy and shift away from an export-oriented business model and garner a better standing in the eyes of the international market.
Consequently, China’s push toward urbanization and domestic consumption could help sustain future growth as a rising middle class fuels the economy.
Moreover, the Chinese market remains underallocated in many global investment portfolios as investors have only been able to access Chinese equities through Hong Kong-listed shares or companies listed in New York. If Chinese A-shares gains wider acceptance, especially if MSCI includes the securities in its benchmark emerging markets index, the greater demand will also help support the Chinese market. [Not if, but when – A breakdown of MSCI’s decision on China’s onshore equity market]