Our data-driven framework tracks economic and financial trends for a range of indicators to help clarify their multi-layered impact on China’s markets and economy, and aid global investors in right-sizing the China exposure in their portfolios.

Rising volatility since late September’s stimulus announcement by the Chinese government has motivated some to reassess the current opportunities and risks in Chinese equities. We analyze one tool at investors’ disposal.  

From the effects of China’s stimulus to the power of sustainability on portfolio performance and companies cost of capital, our panel dissects the latest market drivers and where investors may be focused for the rest of 2024.

Global institutional investors in Chinese equities, either using fundamental or quantitative approaches, may find potential opportunities in sector rotation and in factors’ deviations from their long-term patterns.

Outbound investment from China has grown steadily in recent years, and Chinese companies with the highest exposure to international revenue sources have outperformed the broader China market.

Although Chinese equities generally performed poorly from 2021 through 2023, certain dedicated China funds earned double-digit annualized returns. We propose a three-layer framework to help demystify the drivers of excess returns in the China market. 

Since early January, several forces, including leverage and crowded longs in small- and micro-cap stocks, have contributed to a mini liquidity crisis among some quantitative mutual and hedge funds in China.

Northbound outflows set a record in the last five months of 2023, primarily exiting the financial, consumer-staples, industrial, materials and information-technology sectors.