Is it too late to jump on the China bandwagon?
Various index providers are increasing the weight of China in their indices. For institutional investors, this poses a dilemma. Should they blindly follow this move, thereby taking on increased portfolio risk? Strategist Jaap Hoek discusses this topic in our latest podcast episode. Inclusion of a stock or country in an index usually leads to higher prices. If you enter the Chinese stock market now, you might be a bit late – but not too late, Hoek argues.