Shanghai. Photo: iStock

With a 6% jump since year-end, China’s MSCI Index ETF (ticker MCHI) is the top performer in a generally strong emerging market universe.

Source: Bloomberg

Asia Unhedged has a simple approach to market selection: Go where the returns are. Rising earnings were the best predictor of stock market performance during 2017, and the aggregate of earnings expectations of equity analysts still puts China at the top of all major equity markets.

China also benefits from the inclusion of its stocks in the widely-used MSCI benchmark indices, encouraging global investors to add Chinese equities to their portfolios.