China's A-share market's untapped opportunities

Author: | Published: 8 Mar 2018

China’s A-share market has been growing steadily but international investors need to understand its nuances to take full advantage

1 Minute read
China’s A-share market has an estimated $9 trillion value, and is the largest segment of the equiy market, both in terms of companies covered and market capitalisation. But only a small amount of these markets is open to international investors, notably because of Chinese rules restricting foreign ownership of local companies and tight currency controls. The situation is improving, however. The gradual liberalisation of the A-share market will take time as more abd more benchmark providers are likely to adopt a gradual approach to including A-shares.

At 15% of the global economy and a similar size to the eurozone, China is hard to ignore. The Chinese financial market is increasingly significant as well, with its equity market accounting for around 9% of the global universe.