The FSA Spy market buzz – 22 March 2024
AllianzGI on China stewardship, Death of the mutual fund, W’s top financial centres, Schroders on Japan, Swiss cuts and Japanese hikes, Reddit, Book wisdom and more.
CIFM Asset Management, the onshore joint-venture between JP Morgan Asset Management Limited and Shanghai International Trust, believes the A-share markets have improved on the issues raised by MSCI last year – the accessibility, trading suspension mechanism and the pre-approval requirements by Chinese bourses launching financial products.
If the MSCI decides next month to include A-shares, possible inflows could top $9.4bn, according to figures from China International Capital Corporation (CICC).
Notably, CIFM said that in the new proposal by MSCI, the combined weightings from the consumer discretionary (12.9%) and consumer staples (10.6%) have surpassed other ‘old China’ industries such as financials (23%) and industrials (16.1%), reflecting China’s transition to a more consumption-driven economy.
The A-shares’ weighting in the MSCI Emerging Markets Index will grow utimately to 18.1%, from the proposal’s 0.5%, the firm added. “The inclusion is an important milestone for global investors to start looking at A-shares.”
AllianzGI on China stewardship, Death of the mutual fund, W’s top financial centres, Schroders on Japan, Swiss cuts and Japanese hikes, Reddit, Book wisdom and more.
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