The MarketGrader China A-Shares 200 index measures the performance of a growth at a reasonable price (GARP) investment strategy for the Shanghai and Shenzhen exchanges within emerging China. MarketGrader uses proprietary fundamental analysis to identify the best 200 companies that exhibit growth attributes based on the optimal price to earnings (P/E) ratio to be a part of this index. The companies are reselected twice a year based on MarketGrader’s proprietary rankings during which time the index is also rebalanced so that all components are equally weighted thus giving every company the same opportunity to contribute to the performance of the index.
The Chinese Equity Market Paradox
In just three decades China’s equity markets have evolved significantly from their humble origins in the 1990s. However, they still exhibit many of the structural deficiencies germane to emerging markets.
Carlos Diez
May 26, 2020
