anomalies . The market capitalisations of China ’ s two largest listed companies – Alibaba and Tencent – are $ 441bn and $ 418bn respectively . The entire market capitalisation of the Mexican stock market is just $ 530bn . Even within Asia , these Chinese stocks look dominant . The capitalisation of the whole Indonesian stock market is WEIGHTS IN MSCI EMERGING MARKETS INDEX
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“ The country ’ s expanding investment universe has created a myriad of opportunities for investing in areas of the market that used to be inaccessible , including the rapidly expanding consumer and consumer-related sectors ”
anomalies . The market capitalisations of China ’ s two largest listed companies – Alibaba and Tencent – are $ 441bn and $ 418bn respectively . The entire market capitalisation of the Mexican stock market is just $ 530bn . Even within Asia , these Chinese stocks look dominant . The capitalisation of the whole Indonesian stock market is WEIGHTS IN MSCI EMERGING MARKETS INDEX
12.75 %
13.46 %
China
9.25 %
5.1 %
20.34 %
South Korea
39.09 %
Taiwan
$ 407bn . Indonesia , let ’ s not forget , has 275 million people . For investors , this raises two important questions : are they getting the most out of their China allocation by investing in a generalised emerging markets fund ? And are they missing out on other emerging markets because their allocation is too narrowly focused on China ?
One way only By most measures , China ’ s markets are improving . Catherine Yeung , investment director at Fidelity International , says that under the influence of more foreign investment , companies are beginning to recognise the importance of minority shareholders , while payout ratios are growing and management teams are more focused on sustaining balance sheet strength . Baillie Gifford has recently opened an office in Shanghai , suggesting it believes in the development of the region ’ s capital markets .
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