You think FAANG is distorting the S&P? Consider Alibaba, Tencent, Meituan

In China, however, the competitive landscape is a lot murkier. Alibaba continues to face fierce competition from JD.com Inc. and Pinduoduo Inc

Many have lamented the lack of depth in the U.S. stock market, marveling at how a handful of big tech companies have grown to dominate almost a quarter of the S&P 500 and become responsible for all of this year’s gain. But that lopsidedness is nothing next to China, where the top three stocks in the benchmark MSCI China Index now have more than a 38% weight. 

At this rate, instead of buying passive funds that track the MSCI index, investors might as well just pile into China’s version of FAANG, known locally as ATM: Alibaba Group Holding Ltd., Tencent Holdings