China standalone investing

Analysis, views and statistics on China and standalone investing

What is a China standalone investing strategy?

A standalone investing strategy recognises China's weight in the world economy and treats it as a standalone asset class, in much the same way that investors think of the US, Japan, or Europe.

What is the benefit of a China standalone investing strategy?

Higher exposure to China's growth story. Global indices such as MSCI Emerging Markets and MSCI All Cap World Index (ACWI) tend to underrepresent China.

For example, China stocks are 4.9% of the MSCI ACWI1, but the IMF says that China accounted for more than 15% of the world economy in 2019.

By taking a dedicated approach, investors may get higher exposure than in a generic global equity allocation modeled on a benchmark.