'The lines between private and state-owned companies in China are becoming less clear'

The strength of emerging market (EM) economic growth this century has been well documented, as has the shift (broadly speaking) from commodity and manufacturing based economies to ones more supported by shifting demographics and the burgeoning middle class.

The current MSCI EM index is heavily skewed towards China and its immediate Asian neighbours, representing a combined weight of 56%.  In more recent years, Chinese growth has been driven by increased domestic wealth, technological innovation, entrepreneurship and infrastructure spending. This has all been further supported by financial reform and involvement at the highest political levels.  A more recent structural reform is the opening up of China's A-share market to foreign investors via the Hong Kong-Shanghai and Hong Kong-Shenzhen 'Connect' initiatives. China's central bank wa...