Earlier this month, the MSCI rejected the inclusion of A-shares on its key indices for the third time. Luke Ng, senior VP of research at FE, outlines the concerns.
Tag: MSCI
MSCI tells China ‘No for now’
For the third time since 2013, the US index provider rejected the inclusion of China A-shares in its flagship emerging market indices, highlighting key unresolved issues.
Asia small-cap funds emerge as top performers
Small-cap equity funds have emerged as the top performing funds in Asia, beating their large-cap counterparts over a three-year period.
FTSE paves the way for China A share inclusion
The initial weighting of China A-shares in the new FTSE Emerging Markets China A Inclusion indices will be about 5%. This is expected to increase to 32% when China A-shares are fully available to international investors. FTSE said recent measures to expand the Qualified Foreign Institutional Investor (QFII) and Renminbi Qualified Foreign Institutional Investor (RQFII) […]
MSCI China A-share review
After competing an annual review, the global index provider said it would form a working group with the China Securities Regulatory Commission to resolve concerns and issues highlighted by international institutional investors during its consultation. “The concerns include, but are not limited to, the quota allocation process, capital mobility restrictions and beneficial ownership of investments,” […]
A share on MSCI to erode product differentiation
Axa Investment Managers and M&G Investments recently echoed these views and said passive funds in particular are likely to lose distinction as they all realign their portfolios to include A-shares. A-share inclusion would have a “knock-on effect for the passive investment industry”, said Matthew Vaight, global and Asian emerging markets fund manager at M&G. “Over […]
Baring says to invest on the pullback in China
“In the very short term, the combination of profit-taking to invest in new issuance after the strong run we have seen [in indices] and the potential for tighter controls on margin financing could see a continuation of the market volatility we have seen in recent weeks,” Luo said. “After a very strong start to the […]
HEAD-TO-HEAD: BlackRock Asian Dragon vs Investec Asian Equity
Further easing measures are expected as current economic indicators in China have not improved, AXA Investment Managers and Schroder said recently. Separately, Schroder’s recently cautioned on the overheating in China’s market while BlackRock said it would prefer a selective investment approach following the surge in A- and H-shares. In India, managers like Franklin Templeton said they expect Indian markets to rise as […]
A-share inclusion in the MSCI could drive foreign capital inflow
“The economy is slowing, but what is interesting is if you look at China’s contribution to global growth, and then you look at China’s weighting in the MSCI World Index, then there is a huge under-representation of China,” Yeung said in an interview with Fund Selector Asia. China has less than 3% representation in the […]
What drives China’s A-shares?
Investing in cheap, high momentum or low volume equities, tactics that deliver a premium in developed and many emerging markets, does not show the same result in China’s A-share market, said Sunny Ng, head of portfolio strategists for Asia ex-Japan at State Street. According to State Street research into A-Shares, which was in the Journal […]
