Jun
02

Vanguard Adds China A Shares to Emerging Fund Amid MSCI Debate

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Vanguard Group Inc., the largest U.S. mutual fund firm, will add mainland Chinese shares to its $69 billion emerging-market fund.

China A shares will represent 5.6 percent of the benchmark index tracked by the Vanguard Emerging Markets Stock Index Fund, according to a statement Tuesday. The exchange-traded version of the fund — the Vanguard FTSE Emerging Markets ETF — will also include mainland equities. The fund will follow a transitional index unveiled last month by FTSE Group.

Vanguard’s endorsement of China’s domestic equity market comes as index compiler MSCI Inc. weighs whether to include the shares in global benchmarks, with a decision due next week. The Shanghai Composite Index has surged 141 percent over the past year, and an exchange link with Hong Kong that opened in November provided a new route for foreign investors to buy mainland equities…

Vanguard Adds China A Shares to Emerging Fund Amid MSCI Debate

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