Within just eight days, Chinese stocks have regained their leading position in emerging markets, a spot they had lost over the past ten months. As of September 30th, the weight of Chinese stocks in the MSCI Emerging Markets Index surged to 27.8%, marking the highest level since November 2023.
Analysts attribute this significant rise to the extremely low valuations that prompted a robust rebound. A Dubai-based strategist noted that excluding China from emerging market investments is unwise given its scale, connections with other emerging markets, and low valuations.
The CSI 300 Index has increased by over 27% since the Federal Reserve's interest rate cut, achieving its best relative performance against other emerging markets since June 2022.
