Smartphone giant Xiaomi, Tencent Music among a dozen stocks to be added to MSCI China Index

Smartphone giant Xiaomi and online video platform Iqiyi are among a dozen listed companies to be added to MSCI’s benchmark Chinese equities gauge, the global index compiler announced on Monday. The inclusion of the stocks in the MSCI China Index at the end of February is likely to benefit them in the long term because they may attract global funds that track such indexes, said analysts. MSCI claims to serve “99 of the top 100 largest money managers”. “Those funds will not buy and sell frequently but [they will] hold…

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Global index compiler MSCI considers quadrupling Chinese stocks’ weightings in its benchmark gauges

MSCI is considering raising the weighting of Chinese stocks in its benchmark indexes four fold and adding small-cap companies for the first time. The US-based index compiler will immediately start a consultation with global investors, and the inclusion factor of yuan-traded A shares may increase to 20 per cent from 5 per cent, MSCI said in a statement on Wednesday. Implementation will be carried out in two phases, with the weighting increasing by 7.5 per cent each during the May and August review process next year. The final result of…

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