Foreigners climb on board China’s A-train

China's A-share market has such a shady reputation that foreign investors might have been expected to revel in their exclusion from it. But its recent opening to outside institutional investors has been greeted with enthusiasm.

CHINA’S A-SHARE market – the part of the People’s Republic’s equity market that until recently only domestic investors could access – is distinctly investor-unfriendly.

It has after all been well headlined that some of China’s less scrupulous brokerages have been involved in price ramping, money laundering and other irregularities on the A-share market. Few of the 1,200 companies listed have ever heard of the term corporate governance. In addition the $500 billion market has a P/E ratio of around 40, making it the world’s most expensive.

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