Msci’S Huge Selection On Adding China Stocks To Rising Markets Index

The main argument is the sheer size of the mainland China market: north of $6 trillion in the combined Shenzhen and Shanghai indices.
MSCI has passed on including mainland China in the last three years, even as its competitor, FTSE (owned by the London Stock Exchange), does include mainland China stocks.
Right now MSCI’s broadest index — the MSCI All-Country World Index — assigns China a roughly 3 percent weighting.
China has also instituted the Shanghai–Hong Kong Stock Connect and the Shenzhen–Hong Kong Stock Connect, which connects both mainland exchanges with the Hong Kong Stock Exchanges and which enables investors to trade shares listed on each other’s markets using local brokers and clearinghouses.
That’s about 10 percent of the market capitalization of the entire global equity market (the U.S. market cap is roughly $28 trillion).

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