We analyse how the industry composition of the FTSE China A50 index has mirrored important structural changes in the Chinese economy over the last twenty years. These parallel changes highlight that the FTSE China A50 is representative of the underlying Chinese economy and so offers international investors an efficient means of gaining exposure to the Chinese economy. The SGX FTSE China A50 Futures provide a liquid method for obtaining the exposure for a wide variety of international investors.
Key takeaways:
- The Chinese economy has changed in fundamental ways over the last twenty years due to policies and increased maturity of the economy
- These changes in the economy have been mirrored by changes in the industry composition of the FTSE China A50
- These parallel changes indicate that the FTSE China A50 is representative of the Chinese economy, therefore providing investors efficient exposure to the underlying Chinese economy
- The SGX FTSE China A50 Futures provide a liquid method for international investors to obtain exposure to the Chinese economy
What this research means for investors
This analysis aims to instil confidence in investors with regards to the FTSE China A50 being representative of the underlying Chinese economy and therefore an efficient way to get exposure to the Chinese economy.
