China enters the MSCI

Posted: June 21, 2017 in Uncategorized

Finally Chinese shares have been admitted to the MSCI Indexes.

A good outcome, but more symbolic than anything else, at the moment.

At 0.73%% of the index initially it will bring in USD10bn in a USD6.8Trillion market (drop in the ocean) in 2018. Over the next 5 years USD210BN.

The inclusion will be done in two parts may and August 2018.

But the road is clear as, at the end, the inclusion will be 5% (and Chinese related shares will be 40% of the MSCI EM).

Chinese related stock are now 18.1% and will become 28.55% by August 2018.

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