Sophie Earnshaw: Three reasons to invest in China

It increasingly makes sense to think of China as an asset class in its own right. China's share of the MSCI Emerging Markets index has more than doubled in the past decade. Even now, however, although it is the largest country by weighting, it represents a mere 26% of the index. That figure is still low. At the moment, more than 3,000 Chinese listed companies are omitted from the index. Simply adding in their market value at the present time would increase China's MSCI weighting to around 41%. Clearly, given that most emerging markets managers have underweight positions, the potential fo...