Western Investors Are Misreading China's Markets
Outsiders are leaving money on the table by persisting in seeing the country as simply another big emerging market.
Locals know what they’re looking for.
Photographer: Johannes Eisele/AFP/Getty Images
Chinese and American investors share one thing: They both see opportunity in China’s markets. Westerners would do a lot better, however, if they started approaching those markets the way locals do.
Chinese bourses have boomed recently, minting a new billionaire virtually every week. In just ten days last month, the blue-chip CSI 300 Index jumped 17%. Year-to-date, non-financial companies in China have raised $41 billion, not far off the $62 billion in proceeds from IPOs in New York. Among the top 100 best-performing stocks with at least $20 billion in market value this year, one-third are Chinese.