In a year with few bright spots for global equity markets amid the global pandemic, China has provided some relative upside—or less downside—for investors according to the FTSE Global RIC Capped Indexes.
In 2020 as of April 24, these indexes have shown Asia equity markets, in particular China (-6.9%) to have the least impact. Developed markets such as Developed Europe (-23.9%), France (-28.3%) and the UK (-29.3%) have been more impacted while emerging markets such as Mexico (-42.8%) and Brazil (-52.3%) have seen significant declines this year.
Philip Lawlor, managing director, Global Markets Research, FTSE Russell:
“Call it a case of first in, first out. Despite the distinction of being the initial epicenter of the now global coronavirus outbreak, China’s equity market suffered far less than both the emerging and developed indexes in the March downdraft and for the year so far. We see two key drivers behind Chinese equity outperformance year-to-date; a rebound in Chinese manufacturing data and much more muted underperformance in the industrial, technology, oil & gas and financial sectors relative to other markets.”
Patrick O’Connor, head of global ETFs for Franklin Templeton:
“China is a reminder that while it can be difficult to predict how individual countries will react to global events, we can expect each country to be impacted in different magnitudes and on varying timelines. Our suite of single-country ETFs, which includes a China ETF, provides investors the ability to invest tactically, where they find opportunity.
For more insights on recent China equity market performance this year, go to the coronavirus market hub on the FTSE Russell website.
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