China

Economy Overview

China is the world's second-largest economy and the dominant force shaping global emerging-market dynamics. Its GDP of approximately $18.5 trillion in 2024 is powered by a manufacturing base that produces roughly 30% of global output, anchored by electronics, steel, chemicals, and increasingly advanced semiconductor and EV sectors. The economy operates under a state-directed market model in which the Communist Party sets five-year strategic priorities — currently centred on 'dual circulation,' meaning domestic consumption growth alongside continued export dominance. The Shanghai and Shenzhen exchanges together list over 5,300 companies and represent the world's second-largest equity market by capitalisation, though foreign access remains gated via the Stock Connect programme with Hong Kong. Capital controls limit direct renminbi repatriation, making A-share ETFs and Hong Kong-listed H-shares the primary vehicles for international investors. Policy signals from the PBOC, NPC, and Politburo Meetings are the single most important macro driver for broader EM asset performance.

Key Sectors