Hong Kong-listed stocks provide direct and indirect exposure to China. Investors should be aware that mainland Chinese companies play an increasingly prominent role in Hong Kong’s stock exchange but that exchange-tracking indices significantly differ in the degree to which they include Chinese shares.
Emerging markets equities, while still attractive relative to developed markets, are not especially cheap in absolute terms.
While much of the rally has been powered by fundamentals (i.e., rapidly rising earnings), recent returns have been boosted by enormous fund inflows that suggest a bit of frothiness is creeping into the asset class.
This report suggests that India is among the most attractive regions for venture investing in Southeast Asia, and the software and telecom sectors appear particularly promising. Also included is information on 21 partnerships already invested in Indian venture capital.
An overview of emerging equity including valuations, correlations with other asset classes, risks, investment vehicles, and benchmarks. Exhibits cover market capitalization, comparative valuations among emerging countries, and performance data on representative emerging equity managers.
What are analysts saying about China’s new foreign exchange-rate regime?
While emerging markets have struggled in 2004, the risk-reward trade-off for the asset class remains quite favorable.
Emerging markets equity indices could undergo a radical facelift if FTSE and MSCI follow through with plans to boost exposure to Korea and/or Taiwan.
While the current party may end badly, their long-term prospects still look good.
Despite their huge run-up, emerging markets equities still look good.