Talking Point  

China is reshaping emerging markets


The growth of the Chinese economy and equity markets is reshaping the emerging markets as a whole, according to the guests on the latest FTAdviser Podcast.  

Nicholas Field, emerging markets strategist at Schroders, which sponsored the podcast, said he generally prefers to gain emerging markets equity exposure via a generalist global emerging markets equity fund, as he doesn’t believe that individual countries have a sufficient number of good companies listed on their stock exchanges to make a country specific fund worthwhile.

But he said the Chinese market was now developing to the point that “it may be the case” that a fund investing in Chinese equities is now feasible, as that market has grown in size and depth.

Mike Coop, investment manager at Morningstar, said: “The development of China now is such that even if you buy European equities you are getting a large indirect exposure to China. 

"They have so much capital, and it's such a big economy, most investors have an exposure to China whether they are aware of that [or not]. I think generally emerging markets are underrepresented in portfolios.” 

You can listen to the full podcast by clicking play on the video above, or by searching for the FTAdviser Podcast on Spotify, Apple Podcasts, Acast or Stitcher.