The news is from earlier in the session on the the index provider to increase China stocks in indexes:
- MSCI to quadruple the contribution of mainland Chinese companies' to its benchmarks
- More on MSCI to increase weighting of Chinese stocks
GS remarks:
- 168 mid caps will be added at a 20 percent inclusion factor in November, an upside surprise versus the originally proposed timeline of May 2020
- Overall inclusion factor increase could usher in a potential $70 billion of net buying to A shares, with the flows likely skewed toward consumer, health care and a select group of "foreign favorites"
- The rising representation of A shares in global indexes could create active allocation demand; still, recent investor feedback suggests "some asset managers are restrained/discouraged from investing in China A directly for various regulatory, accessibility, legal and fundamental reasons"
The comments come via Bloomberg, and piece has much more, including responses from JOM, AMP and others. Link for the full piece.
