ARX Series 1 December 2021
Globalization of China A-shares
One of the biggest investment stories of the century
The China A-share market is already the world's second largest. With China's capital markets opening up and index inclusion, we expect over US$640 billion of foreign capital inflow into A-shares over the next 3-5 years.
Author: Qi Wang, CFADownload PDF
- The China A-share market is big and expanding
- The market is rapidly opening up to foreign investors
- We expect global index inclusion to trigger over US$640 billion of capital inflows
- Globalization of China A-shares should have a major impact on global investing
- …and also cause a paradigm shift in the local Chinese market
- Passive investing in A-shares can be a trap, a “growth trap ”
- We believe in active management through fundamental research and stock picking
- Our unique Quality framework for China A-shares is key to Alpha generation
MegaTrust Investments is an employee-owned, boutique China manager specializing in A-shares (domestic Chinese stocks). The firm uses bottom-up, fundamental research to pick stocks, with a focus on company quality and corporate governance.