The recent announcement of China’s “Nine-Point Guideline” has sparked hopes among investors for the improvement of corporate governance in the country. This, combined with a reshuffle at the Securities Regulatory Commission and a push for capital returns, indicates a positive shift in the government’s approach towards the equity market. The implementation of these reforms is expected to create new opportunities for investors, with large-cap Chinese stocks offering a significant upside potential. The Franklin FTSE China ETF (FLCH), which focuses on lower-priced offshore listings, is well-positioned to benefit from this positive momentum.