China continues to undergo enormous change, and there are many factors to monitor in this massive and highly complex economy. Significant change continues in relation to China's economic model, with concerted efforts to focus more on domestic growth drivers to help rebalance the economy. The rising power of the consumer, along with innovation and technology, are major dynamics driving economic growth.
Yet China remains substantially underrepresented within global indices. It makes up only around 5% of the MSCI All Countries World Index, while its economy represents a staggering 17% of total world gross domestic product (GDP). This anomaly, however, is narrowing, and we expect China's weighting in global indices to increase considerably over the next few years.
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