Most investors think buying a China ETF means they've covered China. It turns out that's only part of the story. Beneath the household names sits one of the world's largest markets, filled with companies, industries, and opportunities that rarely make international headlines.

When people think about investing in China, the same companies usually come to mind: Alibaba, Tencent. Maybe BYD.

They're familiar names. They're widely covered by the media. And many investors assume owning them means they own "China."

During a recent conversation with Tian Pan, Head of Strategy at Prescient China, one idea kept surfacing. China is far bigger than the part of the market most investors ever get exposure to.

Why most China ETFs only show part of the picture

China's equity market is worth roughly $22 trillion, making it the second-largest stock market in the world.

Yet many traditional China ETFs follow the MSCI China Index, where a relatively small number of large technology and financial companies dominate the portfolio.

That means hundreds of other companies compete for the remaining allocation.

According to Tian, this can leave investors with concentrated exposure rather than broad participation in China's economy.

The market many global investors rarely access

When people hear "Chinese shares," they often think of Hong Kong listings.

But China's mainland exchanges in Shanghai and Shenzhen are actually much larger.

These onshore markets contain thousands of businesses spanning manufacturing, healthcare, consumer goods, industrials, technology, renewable energy and more.

For many international investors, accessing these companies has historically been difficult.

That's one reason Prescient built its strategy around looking beyond the traditional offshore universe.

Why active management matters in a market like China

Emerging markets can create enormous opportunities. They can also move quickly.

Instead of tracking a fixed index regardless of market conditions, an actively managed approach gives portfolio managers the flexibility to adjust exposure as risks and opportunities evolve.

For Prescient, that also means allocating across different asset classes, including equities, bonds and cash when appropriate.

China is still growing at extraordinary scale

One statistic from the discussion helps explain why many long-term investors continue paying attention to China.

China's economy is worth around $21 trillion.

Growing at roughly 5% a year means adding close to $1 trillion of economic activity annually.

For investors with decades until retirement, Tian believes participating in even a portion of that long-term growth story deserves consideration within a diversified portfolio.

China's innovation story goes beyond manufacturing

China has spent years being viewed as the world's factory.

Today, many investors are watching something different.

Innovation.

The conversation explored how Chinese companies are becoming global leaders across industries including:

• Electric vehicle batteries
• Artificial intelligence
• Robotics
• Semiconductor manufacturing
• Advanced manufacturing
• Consumer technology

Companies such as CATL have become dominant suppliers to global automotive manufacturers, while China's AI ecosystem continues developing rapidly alongside its US counterparts.

Why AI remains one of China's biggest opportunities

Artificial intelligence naturally became one of the biggest discussion points.

While many investors focus almost exclusively on US companies, China has built an increasingly competitive AI ecosystem of its own.

Models like DeepSeek attracted global attention by delivering capable open-source AI at significantly lower cost, while a growing number of Chinese AI companies continue serving one of the world's largest domestic markets.

Tian believes AI hardware remains one of the most exciting long-term opportunities, although he also acknowledged that it comes with meaningful risk and volatility.

What risks should investors keep in mind?

No investment opportunity comes without uncertainty.

The discussion highlighted several factors investors should continue monitoring:

• Geopolitical tensions and trade disputes.
• Changes in government policy.
• Consumer confidence within China.
• Demographic trends over the long term.
• Market volatility common across emerging markets.

Rather than trying to predict every event, Prescient's approach focuses on managing risk while remaining flexible enough to adapt when conditions change.

What everyday investors can take away

Perhaps the biggest lesson from the conversation wasn't about China specifically.

It was about asking better questions.

Instead of simply asking:

"Do I have exposure to China?"

A more useful question might be:

"Which China am I actually invested in?"

Because two investments with the word "China" on the label can look remarkably different beneath the surface.

Understanding what you own, how it's managed, and where that exposure really comes from can be just as important as deciding to invest in the first place.

Curious to hear the full discussion?

Watch the complete conversation with Tian Pan from Prescient China and explore how active management, onshore markets, and long-term trends are shaping one of the world's largest investment opportunities.

Discover more insights in our blogs

Have You Tried These Saving Tips to Hit Your First R50,000?

How to Spot Shares That Are on the Rise

So, When Do You Actually Sell Shares?

How to Customise Your Viewing Experience on Easy 3.0

Inside Our Team’s Top AI Basket Picks and Platform Features

Why Defensive Stocks Can Be Your Best Bet for Stability and Income

7 Tips to Survive and Thrive During Market Uncertainties

Buying the Dip Doesn’t Mean Just One Thing

How to Create Powerful Prompts for AI Baskets on EasyEquities

Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by an external contributor as general market commentary and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. First World Trader (Pty) Ltd t/a EasyEquities (“EasyEquities”) does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information (i) contained within this research and (ii) received from third party data providers. You must rely solely upon your own judgment in all aspects of your investment and/or trading decisions and all investments and/or trades are made at your own risk. EasyEquities (including any of their employees) will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice