(China Alert) The end of the China taboo

-We are seeing growth in demand for both China equity and fixed income products
-Major global managers have launched physical China funds in the past three months to cater to this
-BlackRock is taking action by moving towards better China exposure

Update: MSCI may have delayed the inclusion of A-shares into its emerging market indices but many global managers aren’t sitting on their hands. Moves are being made to cater to both current and future demand, with inevitable index inclusion and opening markets being the core drivers. Z-Ben Advisors has seen strong demand for both equity and fixed income products. This comes at a time when China is actively opening mainland access channels for foreign managers – the excuses for hesitation are waning. Notable competitive trends are occurring across the industry, driven by the ability to offer real China exposure. What is perhaps most surprising is that some Chinese managers are increasingly winning capital at the expense of major foreign managers: Are you sure they aren’t your competition?

Update: Many managers reading this will be thinking “I don’t want to sell China right now.” Z-Ben Advisors has some news for you: your rivals may already be pulling ahead …

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