(Bloomberg) -- For months, giving Chinese equities the wide berth looked to be one of the smartest trades among stock investors. The tide has suddenly turned.
The MSCI China Index beat an emerging-market gauge which excludes the nation’s equities by almost 22 percentage points in September, the biggest margin of outperformance since June 1999, according to data compiled by Bloomberg.
The reversal comes after Chinese stocks staged a strong rally as Beijing’s stimulus bonanza fueled optimism of a recovery in the world’s second-largest economy. The moves are likely to re-establish the nation’s equities as a mainstay in global portfolios and reverse a trend of new developing-nation equity fund launches that eschew China’s shares.
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