China has managed to outperform itself in the MSCI China Index, hitting the highest level since July 2015, which is believed to be attributed to the booming development of new growth engines.

“The booming of China’s tech stocks is the main reason for China’s rise in the MSCI China Index, and its outstanding performance compared to traditional economic stocks will be continued,” said Daniel So, a Hong Kong-based strategist at CMB International Securities Ltd.

MSCI has been at the forefront of index construction and maintenance for more than 40 years, launching its first global equity indexes in 1969. MSCI Index offers a modern, seamless and fully integrated approach to measuring the full equity opportunity set.

The MSCI China Indexes consist of a range of country, composite and non-domestic indexes for the Chinese market, intended for both international and domestic investors. Information technology industry in this index occupies an absolute advantage, with over 35 percent of the proportion.

Despite the downward pressure of China’s macro economy, China, at its transition period, will continue to support new growth engines in such fields as robotics, artificial intelligence, medical treatment and financial technology that are favored by investors. 　

“New growth engines are opening new prospects for China’s development”, Premier Li Keqiang said in this year’s Government Work Report on March 5.

The dazzling MSCI China Index turned out to be a microcosm of booming new growth engines. In the first quarter, China’s strategic emerging industry recorded a growth of 10 percent, high-tech industry gaining 9.2 percent, the production of the new energy automobile at a growth rate of more than 80 percent, and medical equipment, as well as intelligent electronic products, all maintaining rapid growth.

New growth engines not only support China to maintain a stable performance with good momentum, but also push forward the transformation and upgrades of traditional driving forces.

In the first four months of this year, the investment in the technological upgrades of the manufacturing industry grew by 7.9 percent, 3 percent higher than the manufacturing industry as a whole.

Premier Li stressed at a State Council executive meeting on the transformation of old and new growth engines in January that the new economy, business patterns and momentum should support and drive the restructuring of traditional industries.