Potential inclusion of A shares in global indices could be catalyst for unloved Chinese equities
Jun 19th, 2013 | By Simon Smith, CFA
By David Stevenson – The China bears are rampant. In the space of just a few years, the ‘next great superpower’ has gone from hero to zero. If we track asset flows, China is about as unpopular as you can possibly get.
As a consequence, Chinese equities are now ludicrously cheap despite impressive earnings growth and healthy dividends. Fortunes could be about to change, however, as index providers such as MSCI consider the inclusion of China A shares in major global indices.
