3 Source: I/B/E/S, FactSet, Goldman Sachs
Important information
The MSCI China Index is an unmanaged index considered representative of Chinese stocks.
The Shanghai Shenzhen Composite Index (CSI 300) is a free-floated index that consists of 300 A-share stocks listed on the Shanghai or Shenzhen Stock Exchanges.
The Topix (Tokyo Stock Price Index) is a free-float-adjusted market-capitalization-weighted index measuring the performance of large-cap stocks listed on the Tokyo Stock Exchange.
Price-earnings (P/E) ratio, also called multiple, measures a stock’s valuation by dividing its share price by its earnings per share.
Price-to-book (P/B) ratio is the market price of a stock divided by the book value per share.
Standard deviation measures a portfolio’s range of total returns and identifies the spread of a portfolio’s short-term fluctuations.
American depositary receipt (ADR) is a negotiable certificate issued by a US financial institution representing shares of a foreign stock that is traded on a US exchange and denominated in US dollars.
The S&P 500® Index is an unmanaged index considered representative of the US stock market.
The Shanghai Hong Kong Stock Connect is a cross-boundary investment platform that connects the Shanghai Stock Exchange and Hong Kong Stock Exchange. Under the program, investors in each market are able to trade shares on the other market using local brokers and clearinghouses. It was launched in November 2014.
RQFII stands for RMB Qualified Foreign Institutional Investor. RQFII is a policy initiative of the Mainland authorities which allow qualified holders of RQFII quota to raise funds in Hong Kong and channel such funds to directly invest into Mainland securities available in the Mainland securities market.
Investments in companies located or operating in Greater China are subject to the following risks: nationalization, expropriation, or confiscation of property, difficulty in obtaining and/or enforcing judgments, alteration or discontinuation of economic reforms, military conflicts, and China’s dependency on the economies of other Asian countries, many of which are developing countries.
In general, stock values fluctuate, sometimes widely, in response to activities specific to the company as well as general market, economic and political conditions.