Practical Applications of A Foreign Investor’s Guide to Accessing the Chinese Equity Market

Abstract

How best to participate in the growth of China is top of mind for many asset owners. The unique structure of China’s capital market, combined with the tremendous growth in China’s economy, prompted Andrew Alford and Alison Lau, both Managing Directors in Quantitative Investment Strategies at Goldman Sachs Asset Management and Gao Hua Asset Management , respectively, to investigate the opportunities and challenges for institutional investors.

Developing a balanced approach to equity exposure in China requires extra effort, they advise. In this report, Alford and Lau explain some of the key features of the Chinese equity market and describe several approaches. Investors have several options, but some approaches may be better suited for those who are already invested in emerging markets.

Their full analysis, A Foreign Investor’s Guide to Accessing the Chinese Equity Market , can be found in The Journal of Portfolio Management’s Special China Issue .