“The China A-shares market has long been recognized as one of the world’s most coveted investment opportunities. Chinese A-shares are representative of world’s second-largest economy and yet in the past they have been notoriously difficult for foreign investors to access,” said Deutsche Asset & Wealth Management Managing Director Martin Kremenstein in an email exchange with ETF Trends.
While global investors are not over-allocated to the A-shares, there are signs they are reaching heavy allocations to Chinese stocks. “In December, more than 60 percent of emerging market fund managers were overweight on China’s market, according to a Bank of America-Merrill Lynch survey,” CNBC reported.
That made China the second-most popular emerging market in the survey behind Russia, another deeply discounted developing market.
iShares China Large-Cap ETF
