By Bradley Krom and Brian Manby
With relations between the U.S. and China remaining fluid, some investors are questioning if Chinese equities should be a part of their asset allocation.
In our view, an equally important question is whether investors should have exposure to companies where a government can be a highly influential shareholder. With Chinese companies accounting for nearly 32% of the MSCI Emerging Markets ((EM)) Index,1 these nontrivial decisions can have a significant impact on total returns.
China currently accounts for the largest percentage of the MSCI EM Index, at almost