Beijing’s attempts to soften the coronavirus outbreak's impact on local equities may provide temporary support to the market, but experts think it could spell trouble for investors.
Coal Pension Trustees, which manages £21 billion in assets, is about to select two fund houses to run China onshore equity portfolios, reflecting its rising focus on Asia.
Most international asset owners are likely to pick partners to help them invest into China's A-share market, as the stocks gain an increasing weighting in international indexes.
Beijing is prioritising reforms, which is good news for its long term prospects but could reduce the nation's short term economic growth, and affect its appeal to equity investors.
The US fund house has been beefing up its equity research desks in the region, with a strong focus on China, as it moves to better integrate Asia research within its global stock coverage.
In the second of two articles looking ahead to MSCI's June decision on A-shares, some foreign investors are not sure that Chinese stocks are ready for inclusion in emerging-market indices.