Once Considered As Unstable, Mainland Chinese Shares Could Join Key Msci Index

“Then A-shares, the world’s second-largest stock market, would account for 0.5% of the MSCI Emerging Market Index.
“Standard Chartered’s Nelson estimates $8 billion in assets under management will flow into the MSCI Emerging Markets Index as a result of initial A share inclusion.
But four years ago its Emerging Markets Stock Index Fund stopped tracking the MSCI index, and it eventually transitioned to an MSCI indexing rival, the FTSE Emerging Markets All Cap China, which includes A shares.
“It is our view that A-shares belong in emerging market benchmarks,” Vanguard spokesperson Freddy Martino said in an email.
“We think the answer will likely be a ‘no’,” said Lucy Qiu, emerging markets strategist at UBS Wealth Management.

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