• Chinese equities’ declining correlation with other emerging markets offers diversification opportunities, but does not guarantee stronger returns.
• Three-year rolling correlation fell below 0.4 at end-May 2025 from above 0.8 during much of the 2010s.
• The mainland-focused MSCI China A Index outperformed the predominantly offshore MSCI China Index by 28 percentage points in first-half 2026.
• Different sector exposures helped drive the divergence, underscoring how access to Chinese equities can materially affect portfolio outcomes.
• Investors should assess existing China allocations before adding exposure, weighing volatility, liquidity and regulatory risks alongside diversification benefits.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. RisCura published the original content used to generate this news brief on October 23, 2026, and is solely responsible for the information contained therein.