BlackRock recommends investors increase exposure to China

BlackRock’s research unit has said that China should no longer be considered an emerging market, recommending an up to three-fold increase in investors exposure to the country, reports the FT.

The New York-based investment house’s internal think-tank suggested the higher allocations to China stocks and debt as the country’s capital markets have boomed in size and sophistication.

“China is under-represented in global investors’ portfolios but also, in our view, in global benchmarks,” said Wei Li, chief investment strategist at the BlackRock Investment Institute (BII). “It has the second-largest equity market, the second-largest bond market. It should be represented more in portfolios.”