China’s Influence on the US Market

The Economist has something called the Sinodependency Index which measures how important China is to US companies and their stock prices…

This new and improved “Sinodependency” index has massively outperformed the S&P 500 in recent years, climbing by almost 129% since the beginning of 2009, compared with the S&P 500’s gain of 57% (see chart 1). It has also performed far better than China’s own stockmarkets. Buying American firms exposed to China may be a better investment strategy than buying Chinese firms themselves. That is just as well, because foreign participation in China’s stockmarkets is still circumscribed.

Source:

Teenage angst  (The Economist)