Most fund managers will be envious of the sales pitch Peng Choy, chief executive of Hong Kong-based Harvest Global Investments, has at his disposal.
Foreign investors own just 1 per cent of China’s $4.75tn mainland A-share equity market. But if and when the likes of MSCI decide China’s capital markets have become open enough to be included in their mainstream benchmarks, A-shares will account for around 13 per cent of the emerging market universe, and greater China 30 per cent.
Given the benchmark-driven nature of much of the investment world, an avalanche of cash can be expected to ensue.
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