Robert Horrocks, chief investment officer at Matthews Asia, observed China’s A-share market has been too big to be overlooked by global investors considering it is the second largest equity market in the world in terms of market capitalisation and turnover.
“With China’s A-share markets no longer ignored, foreign investors can take advantage of the unique opportunity to participate directly in companies that are benefiting from one of the most dynamic economies in the world,” he said.
Greg Kuhnert, manager of the Investec All China Equity Fund, said the development represented a “milestone” in the evolution of China’s domestic equity capital markets.
“For global investors, Chinese A shares represent the possibility to invest in a broad universe of ideas of over 3,000 listed A shares that we believe are more representative of the Chinese economy and its new growth drivers, also bringing greater diversification benefits from the perspective of overall portfolio volatility.”
He added: “Our view is that in the long term China as a country will play an outsized role in regional and emerging portfolios and may in itself become a unique asset class for asset allocators across the world.”
