MSCI tells China ‘No for now’ on entry into EM index
For the third time since 2013, the US index provider rejected the inclusion of China A-shares in its flagship emerging market indices, highlighting key unresolved issues.
For the third time since 2013, the US index provider rejected the inclusion of China A-shares in its flagship emerging market indices, highlighting key unresolved issues.
China’s miscommunication to the markets and lack of transparency in carrying out financial reforms are investment risks for the region, according to Monica Defend, Pioneer Investments head of global asset allocation research.
The vote on Brexit is now less than two weeks away and markets are increasingly feeling the ill effects of the uncertainty.
China is the fastest-growing mutual fund market globally, with mutual-fund assets that nearly quadrupled over the last four years, the ratings firm said.
Blackrock, Nomura AM and Avanda IM have all received new RQFII quotas for investing in China after the scheme was expanded by RMB21.2bn ($3.22bn, £2.24bn) in April, according to the latest data from State Administration of Foreign Exchange.
China’s currency depreciation trend playing out in 2016 looks set to continue, according to Jade Fu, investment manager at Heartwood Investment Management.
The passive products are gathering momentum in Asia, which is still in the early stages of ETF adoption, said Deborah Fuhr, managing partner of UK-based research consultancy ETFGI.
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The firm has bond, equity and mixed asset funds ready for launch in Hong Kong on 1 June, said head of intermediary business Laurence Lo.
There has been a clear shift among investors over the past two years, with the majority now favouring European equities over the US, according to the latest private client survey from JP Morgan Private Bank.
Downward pressure on the renminbi and A-share volatility are prompting China’s investors to diversify their assets, said David Leung, head of wealth management at Standard Chartered Bank in China.
ETFs could get a boost when they are allowed to be traded through the stock connect programmes, according to James Martielli, Vanguard’s head of portfolio review for Asia.