The FSA Spy market buzz – 19 May 2023
HSBC Private Bank is hiring, an AI ETF comes to market, Nasdaq rally, top performing funds, venture capital woes, Dimon’s ironic short ban, Alibaba’s cloud is freed and much more.
Will MSCI include China’s A-shares? Five views
FSA asked several professionals from asset management firms for their view on the MSCI's upcoming decision to include China's A-shares in its emerging market indices.
In April, Blackrock has for the first time come out in support of MSCI A-share inclusion.
Helen Zhu, head of China equities, said in a briefing last month that MSCI inclusion would improve investor sentiment toward China, but she doubted if a positive decision would result in a large flow of capital into A-shares.
Instead, she prefers H-shares. “There has been about $50bn of southbound capital buying Hong Kong stocks through the Stock Connect, as H-shares have lower valuations [than A-shares],” she explained.
She also expected more inflows into Hong Kong equities from international investors as China’s economy shows signs of improvment.
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