The FSA Spy market buzz – 22 November 2024
Dimensional excludes the Middle Kingdom; JP Morgan’s optimistic outlook; Household wealth is rocketing; Schroders is thinking about privates; Ninety One’s pithy AI; German woes 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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