China’s equity market has underperformed global and emerging-market equities in the past two calendar years. Also, global investors have turned averse to investing in China, given the regulatory uncertainty. Some believe China’s markets have the potential to outperform going forward, given the valuation comfort. Experts say China and the US markets are now inversely correlated. Against this backdrop, Invesco Mutual Fund (MF) is preparing to launch a China-focused international scheme. Investments in China-focused MF schemes are yet to pick up in India, and it will be interesting to watch if the recent run-up in Chinese equities will lead to higher inflows into these schemes. At present, there are five China-focused schemes that together manage only Rs 2,300 crore. Investors have been seeing value in the Chinese market in recent months after a deep correction in 2022 brought valuations to an