What Trade War? FTSE Adds Mainland China Stocks To $140 Billion Index

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Despite the negative headlines on China, and the threat of Washington slapping tariffs 10% or more on everything shipped to the U.S. from China, the world's biggest financial indexes can't get enough of Shanghai and Shenzhen listed companies

COSCO Shipping Holdings added to the FTSE EM this month. Photographer: Jerome Favre/BloombergMedical devices company WuXi AppTec launched in May, raising $354 million in an IPO. The Shanghai-listed company’s share price is up 18.29% year-to-date in the local currency, underperforming the Shanghai Composite index, which is up over 30%.

The total market capitalization of China A Shares included in the FTSE Emerging Index is $59 billion as of Monday, with another $295 billion to be added by March 2020. Around $140 billion is tracking the FTSE Emerging Index, according to the company.“The markets have been rocked since early May by the apparent breakdown of trade talks between the U.S.

“Even now, valuations are relatively cheap at about 12 times,” says Yeo, adding that those multiples are below five-year averages, thanks in large part to trade uncertainties. “We are long-term, fundamental investors and look beyond the short-term noise,” says Yeo about the risk of more anti-China tariffs later this year. Sectors Aberdeen likes include travel, liquor and China’s burgeoning healthcare services industry, especially companies that are more dependent on China and/or Asia, and less dependent on the U.S.

 

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Source: CNBC - 🏆 12. / 72 Read more »