Chinese investors tend to exhibit high exposures to domestic equities. Incorporating U.S. equities could help Chinese investors diversify their strategies and alleviate home-country bias. For example, the S&P 500^® may be relevant for exposure and sensitivity to the U.S. economy. Additionally, market participants seeking to offset domestic equity biases or express tactical views may wish to consider the potential applications of the S&P 500 sector indices.

The representation of U.S. equities in global equity markets underscores the importance of a U.S. perspective when looking to express views on various sectors. Exhibit 1 shows the proportion of each GICS^® sector represented by companies domiciled in different parts of the world. Specifically, U.S.-domiciled companies accounted for most of the market capitalization in 10 out of the 11 global sectors.

https://www.indexologyblog.com/2024/03/06/u-s-sector-relevance-to-china