China Shares' Power Surge Leaves Global Investors Skeptical
- Biggest China ETFs seeing outflows despite Hong Kong gains
- MSCI China Index is off to best start of a year since 2012
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The biggest equity rally in Asia this year has yet to captivate global investors.
The MSCI China Index, which is dominated by Hong Kong-traded Chinese shares, has surged 11 percent since Dec. 31, its best start to any year since 2012. That’s been fueled by $9 billion of inflows through cross-border trading links as mainland investors seek to diversify from yuan-denominated assets. The enthusiasm hasn’t really extended elsewhere, though, with the two largest U.S. exchange-traded funds tracking Chinese shares seeing outflows in 2017.