We’ve talked a lot in previous podcasts about the Chinese economy but not as much about the Chinese equity market.  This week has been the worst in six years for Chinese shares so Guy Foster, Head of Research talks to Bradley Okita, Managing Director at Neuberger Berman about what triggered the rise and fall of the Shanghai stock market.

Bradley speaks about the recent opening up of the second largest stock market on the globe, the “A-share” market to global investors and the effects this is having on the market and sentiment. With all eyes on whether or not China will get added to the MSCI global benchmark, Bradley explains that he sees it as inevitable, and thus asks the question when and not whether. Looking for answers behind the recent surge in the market since the financial crisis, valuations have dwindled leaving stocks on cheap valuations and despite China’s slow-down in growth, 7% is still well above global growth – something which Chinese shares have failed to capitalise on in the past. 

 

 

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