Second, while the yuan is unlikely to replace the dollar, China’s continuing ascent means that Chinese assets, both stocks and bonds, are likely to represent a growing share of global benchmarks. As such, investors looking to manage their holdings relative to global indices should consider ways to increase their exposure to China.
For additional reading on the topic, the BlackRock Investment Institute paper “Climbing China’s Great Wall of Worry” offers more commentary on the investment risks and opportunities in China today.
Sources: Bloomberg, BlackRock
Russ Koesterich, CFA, is the Chief Investment Strategist for BlackRock. He is a regular contributor to The Blog.