Dow Jones / Wall Street Journal with the news on a huge boost for China shares
- MSCI provides stock market indexes
- The firm will increase the contribution of mainland Chinese companies' to its benchmarks by a factor of four
Says the Journal:
- a move that makes shares in Shanghai and Shenzhen all but unignorable for many international investors.
Sure does.
Link (WSJ is gated)
If you can't access the WSJ, the FT has news also (oh, yeah, the FT is gated but a free registration can help access a certain number of articles each month):
- MSCI included Chinese "A-shares" in the MSCI Emerging Markets index last year, but with a modest inclusion factor of 5 per cent of the float-adjusted market capitalisation that was added in two stages in May and August.
- On Thursday, MSCI lifted the inclusion factor to 20 per cent, which will in practice triple the Chinese weighting in its EM index from 0.71 per cent to 2.82 per cent by August next year.