Moreover, Chinese equities and related ETFs may have more room to run as active fund managers shift from their underweight China exposure. Active managers may be pressured to increase their positions in the Chinese markets after funds have underperformed their benchmarks for their worst performance since 2009. [Underweight Active Managers Could Add to Rally in China Stocks, ETFs]
The renminbi is becoming an increasingly important investable currency. Cembalest said that central banks and sovereign wealth funds have invested between RMB300 billion and RMB400 billion in renminbi-denominated assets, and the European Central Bank has also stated that it is considering investing in RMB-denominated assets as well.
iShares China Large-Cap ETF
For more information on China, visit our China category.
Max Chen contributed to this article.