Why are foreign investors ignoring the China rally?

Why are foreign investors ignoring the rally?

Julian Chillingworth, chief investment officer of Rathbone Unit Trust Management, analyses the drivers behind recent strong performance for Chinese equities and foreign investors' apparent reluctance to jump on board

A bull has been let loose in the China shop over the past six months, with the MSCI China index soaring by over 30%. This is more than double the return of the MSCI World index over the same period. In addition, the Shanghai A-share index has swelled almost 90%. So where has the bullish sentiment come from?  It is no secret Chinese economic growth is slowing, no matter how much the authorities might try to fudge the numbers. Historically-accurate indicators suggest the official estimate of growth is very flattering indeed.  Exports have, on the whole, strengthened so far this year; ho...