Jun
07
China Entry to MSCI Poses Risks for Investors Seeking Diversity
ByThe inclusion of China’s mainland stocks in MSCI Inc.’s developing-nation index would further boost the dominance of Asia in the widely followed benchmark and create a risk of lopsided exposure for investors.
The outperformance of the region’s stocks over the past five years against markets such as Brazil and Russia has helped increase their weighting in the MSCI Emerging Market Index to 69 percent, the highest since at least 1995. Hong Kong-listed Chinese companies, along with those in South Korea and Taiwan, make up more than half of the 23-country benchmark, which has about $1.7 trillion of global funds tracking it…
China Entry to MSCI Poses Risks for Investors Seeking Diversity
