China A-Shares: Momentum Continues

Taken from our Asia Ex-Japan research, exposure towards China A-Share stocks hit new highs this month. The current average holding weight of 4.62% represents an all-time high, having more than doubled over the last 24 months. The overweight position has reduced to +1.59%, with MSCI increasing their inclusion factors in May and August, which in itself may have been a driver for active managers to increase allocations. The next increase by the index is due in November. We explore the stocks and the funds behind the moves and put the current China A-Shares allocation in context to other Asia Ex-Japan countries.

Steven Holden