A staggering 98% of global investors said they have difficulties engaging with onshore Chinese companies and do not agree with the recent A-share inclusion on the MSCI, according to a survey by the Asian Corporate Governance Association (ACGA).
Index provider MSCI formally included around 230 China A-shares into its three widely-tracked indices on Friday, but fund managers see a minimal impact on the A-share market.
Friday 16 February marks the Chinese New Year, with 2018 welcoming the Year of the Dog. However, while the dog is associated with honesty, faithfulness, and a strong sense of responsibility in the Chinese zodiac, investors will be hoping for a repeat of 2017 – the Year of the Rooster – which saw the MSCI…
The higher a country’s environment, social, governance (ESG) rating, the better its government bonds perform, MSCI has found.
Pictet AM’s chief strategist Luca Paolini tried to redefine the concept of a market correction this week, urging investors to take advantage of a 2% fall in asset prices to “rebuild positions in riskier assets”.
Frontier market equities saw the largest net inflows for a very long time in June, suggesting the interest in developing economies’ stock markets is broadening.
Emerging markets are increasingly attractive but selecting the right fund is the key to performance, according to Morningstar.
The UK was the worst performing single country index in June while Canada was the best, according to data by MSCI.
Wealth and asset managers give their views on the implications of the MSCI inclusion of A-shares and where they find investment opportunities onshore.
Saudi Arabia has taken a big step towards being classified as an emerging market after the MSCI added the Gulf state to its watchlist for potential upgrade on Tuesday, with the Saudi royal family making an unprecedented succession change a day later.
Largely within expectations, the MSCI will add Chinese A-shares to its emerging markets indices starting in May next year – a symbolic rather than impactful move in the short run.
With a string of countries having been promoted from frontier market to emerging market by index provider MSCI in recent years, investors need to ask themselves the question: are frontier markets still a viable asset class? And if they aren’t, is that actually a problem?
