Stock Strategist (ETF Edition): The Evolution of the Chinese Market

[Morningstar Logo]( [Company Site]( [Company News]( [Membership]( [Portfolio]( [Stocks]( [Options]( [Funds]( [ETFs]( [Markets]( [Tools]( [Personal Finance]( [Discuss]( Stock Strategist (ETF Edition) The Evolution of the Chinese Market As they open their doors to foreign investors, Chinese capital markets are entering the next stage of their evolution. [tab_bar] by Jackie Choy, CFA | 7/11/2018 6:00:00 AM In "[The Evolution of Emerging Markets]( we discussed the past, present, and future of the composition and drivers of emerging-markets stocks. One of the more noteworthy developments that we highlighted was China's rise to prominence among emerging stock markets. When Chinese stocks were first included in the MSCI Emerging Markets Index in September 1996, they accounted for just 0.46% of the benchmark's value. As of March 2018, Chinese stocks made up 29.9% of the index's total market cap. Here, I will explore how the Chinese market has changed in the past 20-plus years. Strong Performance, Gut-Wrenching Volatility The MSCI China Index was launched on Oct. 31, 1995, some seven years after the launch of the MSCI Emerging Markets Index. From March 2001 through the end of March 2018, the MSCI China Index generated annualized total returns of 12.2% versus 6.0% for the MSCI World Index--a measure of the performance of developed-markets stocks. During that same span, the MSCI Emerging Markets Index gained 10.7% annually. To read more, click [here](. Sponsored Links [Buy a Link Now]( New: ETF Managed Portfolios Center On [MorningstarAdvisor.com]( Tap into the industry's best source of information on ETF strategies for financial advisors. See key performance data, screen for specific strategy attributes, and learn more about this fast-growing area of the investment marketplace. [Click to get started](. Free Issue | Morningstar's Stock Newsletter >> Morningstar StockInvestor is celebrating more than 10 successful years of high-quality stock investing. Its two real-money portfolios have outperformed the S&P 500 since 2001. [Get new ideas for the core of your stock portfolio]( ). Search Most Recent Articles [A Challenging Second Quarter for International-Stock Funds]( [Self-Employed? How to Budget for Taxes]( [Biogen Scores Surprise Win]( Latest Analyst Reports [T. Rowe Price Spectrum Income]( [Poplar Forest Partners A]( [Goldman Sachs Mid Cap Value Instl]( [Gotham Neutral Institutional]( [Fidelity Advisor® Small Cap A]( ABOUT OUR EMAIL TO UNSUBSCRIBE this email address to the Stock Strategist newsletter, please click "reply" and then click "send." This will unsubscribe only this email address to this specific newsletter. All subscription changes will take effect within one business day. Replies are not read by individuals, so please do not use this for queries about Morningstar.com. If you have questions about Morningstar.com or your membership, send a note to [joe@morningstar.com](mailto:%20joe@morningstar.com). ABOUT OUR PRIVACY POLICY Please [click here]( to learn about Morningstar's privacy policy. (c) Copyright 2018. Morningstar, Inc. 22 West Washington Chicago, Illinois, 60602 All rights reserved.