I appreciate that there’s a lot going on in the world at the moment, and we’re all distracted by the events in Europe and the plight of the Ukrainians, but the following chart from Qi Wang of MegaTrust caught my attention as it illustrates the massive under-representation of foreign investors in China’s domestic A share market when compared with other markets.
See below:
As you can see from Qi Wang’s latest research paper “Globalisation of China A-shares – Are You Ready?” (which is free to download from his Daily Reflection on China website) there are many reasons to believe that China’s A share market, the second largest stockmarket in the world (by virtually all measures, including size, volume and daily turnover) is likely to see a significant rise in foreign ownership in the years ahead.
This will result in the inflow of many billions of dollars from foreign institutions, a trend that will lead to rising share prices and positive returns for the early movers.
By guest writer: David Thomas, China Expert
Source: China Invest
