China A-Shares

Over the past three decades Acadian has successfully applied our systematic investment process in nascent markets. With the ongoing liberalization of the onshore Chinese equity markets, we are now leveraging this considerable experience by launching a dedicated China A-shares strategy. After conducting extensive research on the onshore China A-Shares market, Chinese regulators have granted us the authority to trade local A-Shares via an RQFII license. As the result of our research we have specifically calibrated our risk and return forecasting frameworks to suit the unique dynamics of this market and see this as the next frontier in our history of applying systematic investment strategies in emergent capital markets.

Strategy Profile

A Unique and Historic Opportunity

For decades, China has been slowly opening its economy and capital markets to the rest of the world. The 1990s brought the opening of trade and establishment of capital markets, specifically the establishment of the Shanghai and Shenzhen stock exchanges. At the time, these new  exchanges served an economy that reflected 3% of global GDP (versus approximately 15% today in nominal or current price terms). 

Since then, China has experienced tremendous economic growth,  and is now the world’s second-largest economy by nominal GDP. Today, China is the leading contributor to global growth, outpacing the U.S. and contrasting sharply with its prior modest contribution.

Bloomberg:  Quant Firm Says China Stocks 'Very Compelling'