about 3 years ago • 1 min
While benchmark Chinese stock indexes are currently hitting multi-year highs, the smallest companies are being left behind – potentially creating an opportunity for adventurous investors.
As the chart shows, the CSI 1000 index of smaller Chinese companies is trading at the lowest level in more than a decade compared to the CSI 300 index of the nation’s biggest stocks. It’s also looking pretty cheap versus the MSCI World index of the largest stocks in developed markets like the US and Japan.
Those willing to bet on a reversal to the mean could check out the iShares MSCI China Small-Cap exchange traded fund, which tracks the MSCI China Small Cap index.
Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.