To create a cutting-edge China fund, we’ve joined forces with one of the region’s financial giants.
Investors should start building a standalone position in China now, it’s already a huge part of the global equity market. The Chinese economy is the largest in the world on a purchasing power parity basis, and the stock market is growing rapidly, offering considerable opportunities to investors.
1. The Chinese stock market is the second largest in the world, only behind the US:
2. The market cap of China’s stock market is the same as the European Union’s, but by 2029 China is forecast to overtake at pace:
Source: CEIC, IFE, OECD, World Bank, Morgan Stanley Research Projections 2017.
China equities clearly present a long-term opportunity for international investors. But foreign ownership of A-shares is less than 3%, perhaps because the market can seem daunting to an outsider. This is why we have joined forces with Ping An of China (Hong Kong) Asset Management (Ping An), part of one of the region’s financial giants, to manage the Merian China Equity Fund.
Ping An is a household name in China and a common top ten holding in global emerging markets equity funds. It has insurance, banking, asset management and internet finance arms and the portfolio managers are able to tap into their extensive network to:
The quantamental advantage: a rare and modern approach to China equities
The Hong Kong-based investment team are all Chinese and have exceptional understanding of Chinese politics and industry dynamics. Additionally, they are experts in the quantamental space.
Head of capital markets and CIO
Investment Director, GEM and China equities