Diversification and deepening of China stocks fuels investor interest


The go-go days may be gone now but China is still a frontier market for investors, and there is an ever broader range of strategies, such as sector rotation, coming into play

Ezra Sun
Jonathan Garner
Although China is still clearly a frontier market for investors, it is a frontier that is rapidly becoming more and more sophisticated, complex and diverse. The renminbi may not yet be completely freely convertible, and shorting single stocks is still impossible, but the range of stocks listed onshore and offshore gets deeper and wider by the year, exchange-traded funds abound, and there are government initiatives under way in RMB exchange, futures trading, margin trading, stock lending and credit, all of which hold promise of a fully diversified hedge