The coming foreign investment flood

- May 28, 2018-

Stocks, bonds set to sizzle following inclusion in a global index and easing of controls on two-way capital flows

For China's capital markets, a massive, potentially irreversible game-changer is on the horizon.

The imminent change is expected to open the floodgates for unprecedented levels of foreign investment.

"China is now too important a market to ignore because investors can find the kind of growth opportunities here that are rarely available in other parts of the world," said Jeff Li, a London-based global equity fund manager at EFG Asset Management.

The scenario Li foresees is a far cry from the recent past.

For long, global investors' abysmally low exposure to China's capital markets has been disproportionate to the country's 16 percent share of the world gross domestic product ($87.5 trillion in 2017, as per IMF data) and the 106 trillion yuan ($16.5 trillion) valuation of its equity and bond markets.