Skip to content
Subscriber Only

China’s ‘Small Giants’ Lure Investors Hunting for Big Gains

  • Traders favor small-cap growth shares over blue-chip peers
  • ChiNext Index, Star Board 50 have surged over the past month
Daily Life In Shanghai Ahead of China Census
Photographer: Qilai Shen/Bloomberg
Updated on

Investors in China are betting on small-cap growth shares to reignite returns as a shift away from blue-chips starts gaining traction.

While the mainland benchmark CSI 300 is slightly down over the past month, the tech-heavy ChiNext Index is up 6% and the Nasdaq-style Star Board 50 Index has gained 12%. An MSCI Inc. gauge of small-cap growth stocks in China has gained 2%, in stark contrast to its economically sensitive value share equivalent which is down 6.5%.