MSCI is adding 14 US-listed Chinese stocks to its indexes

Global Business

Chinese equities are now a larger part of the global investor’s portfolio. From December 1st, Morgan Stanley Capital International (MSCI), one of the top index providers in the world, will add Alibaba, Baidu and a dozen other U.S.-listed Chinese companies to its emerging market index and several other indexes that cover China.

CCTV America’s Karina Huber reports.

MSCI is adding 14 US-listed Chinese stocks to its indexes

Chinese equities are now a larger part of the global investor’s portfolio. From December 1st, Morgan Stanley Capital International (MSCI), one of the top index providers in the world, will add Alibaba, Baidu and a dozen other U.S.-listed Chinese companies to its emerging market index and several other indexes that cover China.

The most significant one is the emerging market index – it was created by MSCI in 2001 and it is designed to capture and measure stock market performance in the world’s emerging markets.

The index is made up of equities of companies from 21 countries – including Brazil, Russia and China, so by owning the index investors get exposure to a range of emerging market equities.

Previously, most Chinese companies included in the MSCI were in the financial sector. The new additions skew heavily towards tech and e-commerce, reflecting their growing power in the Chinese economy.


Dan McClory on implications of the inclusion in MSCI emerging market index

CCTV America’s Michelle Makori spoke with Dan McClory, Managing Director and Head of China at Burnham Securities.

In June MSCI said it would not include mainland listed shares or “A shares” in its indices because it is so difficult for foreign investors to access them.

MSCI is currently speaking with Chinese regulators and most market watchers believe they will ultimately be included.

CCTV America

Dan McClory on implications of the inclusion in MSCI emerging market index

CCTV America’s Michelle Makori spoke with Dan McClory, Managing Director and Head of China at Burnham Securities.