But it's very unlikely that this strategy would have worked in another region quite as well. Certain sectors have performed much better than others Taiwan technology companies, for instance, have consistently been good buys. Telecommunications companies, like Hutchison, are also good performers. These all have great value. The Chinese monopoly is considering three plans to divide itself to maximize competitiveness and specialization.
Analysts believe the move is a wise one intended to clean house to attract global investors.
Though the breakup will jeopardize China Telecom's market dominance, the tough global telecom market demands reform even in China's notoriously closed market. This theoretically insulates investors from future downward spirals below this level. The fund aims to capitalize on the increasing diversity of the Greater China equities market. The Morgan Stanley Capital International Index is set to throw its weight around. The reweighting, to be done next year, will be based on companies' free-float ratio the amount of all issued shares freely tradable in the market.