A standalone equity allocation to China offers compelling diversification and excess return benefits for those with the ability to take advantage of this exciting opportunity set. In recent times many institutions have looked to access China via global or emerging market (EM) strategies. However, this approach will likely dilute the alpha potential and is not our preferred route.
This WTW paper explores the diversification benefits for standalone equity allocation to China, what are the Alpha opportunities, what are the typical investment approaches, and how investors should position their portfolios.
