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Chinese Stocks from a Factor Lens

Seeking greener pastures for quant strategies

Bill Yeskel, CFA
10 min read
16 Aug 2021

SUMMARY

  • Foreign stock ownership is low in China and the market is dominated by retail investors
  • This provides an opportunity for investors to deploy quant strategies
  • Factor investing has been far more attractive in Chinese than U.S. equities in recent years

INTRODUCTION

The latest chapter in the complicated relationship between international investors and Chinese equities has interesting elements that bear some thought and analysis. First, we will talk about the current events briefly, then we will review the recent and not so recent factor performance there, and we will finish this note with a few thoughts about the future.

WHAT HAS HAPPENED RECENTLY?

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