At the end of February 2020, China’s average share of EPFR-tracked Global Emerging Markets Equity Funds exceeded 30% for the first time. The milestone is another reflection of China’s growing importance for both equity and fixed income fund managers, as well as efforts by Chinese authorities such as the Shanghai-Hong Kong stock and bond connections to open up their capital markets to foreigners.
While much of the recent narrative has centered around the domestically listed A Shares market, however, investors have eight other share classes to choose from when shaping their exposure to China. This is important, given the retail-driven volatility historically associated with China’s A Shares market.
What those other share classes are, and how investors utilize them, were the subject of a webinar on May 20 hosted by EPFR.