China MSCI Stalls Since 2010 as US MSCI Rises 7-Fold

1 articles · Updated · yardeniquicktakes.com · Jun 16

China’s MSCI stock index has gone essentially nowhere since 2010, a stark contrast with the US MSCI index, which has climbed sevenfold over the same period.
That gap extends to tech: Invesco’s China Technology ETF CQQQ has been flat since the financial-crisis era, while the Nasdaq-linked QQQ ETF is up roughly 17-fold.
The report attributes the long-run underperformance to China’s authoritarian command economy, arguing tight state control curbs innovation, risk-taking and private wealth creation.
Other major Chinese benchmarks suggest equities there have offered trading opportunities but failed to deliver durable long-term returns despite the country’s broader economic rise.