Re-weighting of index上海419论坛apital flowsk prices at

by sh419aa on / 上海419论坛

Major stock and bond index providers have started, or have announced that they intend, to in

crease the weighting of China’s securities in their respective benchmark indexes over the course of 2019-20.上海419论坛品茶微信

Global index provider MSCI Inc. announced in February that China’s coverage in the MS

上海419论坛CI Emerging Market Index will increase from its coverage of 235 large-capitalization A-shares to 253 la

rge-and 168 mid-capitalization stocks. On a pro forma basis, A-shares will constitute 3.3 percent-a significant incr

ease from the current 0.7 percent-of the MSCI-EM Index when the process is completed in November.上海419论坛品茶微信

The FTSE Russell, the first international index provider of the Chinese ma

上海419论坛inland’s benchmarks 20 years ago, has elevated China’s A-shares to emerging market

status and started adding them to the FTSEEM Index from June 24, 2019. Upon full imple

mentation of phase 1 by March 2020, the A-shares will make up 5.7 percent of the index.上海419论坛品茶微信

And the Bloomberg Barclays Global Aggregate Bond (GAB) Index started the process of including China’s yuan-deno

上海419论坛minated government and policy bank bonds as a constituent on April 1. Other index providers, such as the FTSE R

ussell and JPMorgan, are reportedly also considering adding China’s debt to their indices.

The MSCI, FTSE Russell and Bloomberg Barclays GAB indexes cover a sizable share of the invest上海419论坛品茶微信

ible markets in the world. For example, the MSCI-EM alone is tracked by an estimated $1.9 trillion in

上海419论坛assets under management (AUM) from pensions, endowments, passive funds, and other investors. And the re-weighting

of these major global investment indexes is expected to result in a re-allocation of capital across emerging markets. As a

result, China’s asset market will inevitably become more important for global in上海419论坛品茶微信

vestors, notwithstanding the “noise” created by the ongoing US-China trade tension.

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