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Hong Kong to launch MSCI China A-share Index futures for global investors to hedge against risks in Asia’s largest stock market

Hong Kong Exchanges and Clearing Limited (HKEX) has signed an agreement with MSCI to offer futures contracts on the MSCI China A-Share Index, giving global investors a tool to hedge their investments in Asia’s largest equity market.The index, which does not have a launch date, is part of the exchange operator’s three-year plan to transform itself into a global financial market place, by offering a greater variety of products, including exchange-traded funds (ETFs), futures and options, as well… Source link

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Overseas buyers told they can’t purchase more of hot Chinese stock – and MSCI gives it the boot

The recent blizzard of overseas buying of Chinese stocks has brought about an outcome with Chinese characteristics – one of the hottest stocks hit a limit on foreign ownership and can’t be bought by foreigners for now.Han’s Laser Technology Industry Group is the hot stock suddenly in the spotlight.Last year, index compiler MSCI added it to the basket of Chinese A-shares that are part of its global gauges. But with the sudden surge in demand for A-shares, Hans Laser suddenly hit the 28 per cent… Source link

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MSCI deletes Shenzhen-listed Hans Laser from its China index due to foreign ownership limit

Global index provider MSCI said it would remove Han’s Laser Technology from its China indexes and slash the weighting of Midea Group, citing investability issues triggered by foreign ownership ceilings.MSCI’s statement on Thursday came a day after Chinese regulators blocked foreign purchases of shares in Han’s Laser as offshore ownership of the firm neared the 30 per cent cap.MSCI said “In light of potential investability issue for investors”, Han’s Laser will be deleted from the MSCI All… Source link

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How a likely trade war resolution and the MSCI China weighting boost point to a rise in the yuan

The yuan looks attractive. That may seem an odd assertion when Chinese economic data has been somewhat disappointing but the case for a firmer renminbi remains stronger than the arguments for a weaker currency. But, if the foreign exchange market does see the renminbi as a winner in the coming months, it also has to identify the losers. Admittedly, the spate of disappointing Chinese economic data cannot be denied. For example, car sales in China fell again in January while purchasing manager… Source link

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China, Hong Kong stocks get boost after MSCI increases A-share weighting in its global benchmarks

Index compiler MSCI’s decision to increase the weighting of China shares in its global benchmarks boosted mainland and Hong Kong markets.The Shanghai Composite rose 0.68 per cent, or 20.09 points, to 2,961.04, in early Friday trading and the CSI 300 jumped 1 per cent, or 37.29 points, to 3,706.66.The Hang Seng Index gained 0.25 per cent, or 70.95 points, to 28,704.13, while the Hang Seng China Enterprises Index was up 0.53 per cent, or 60.52 points, to 11,427.97.The MSCI’s increased weighting… Source link

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Global index compiler MSCI plans to increase weighting of Chinese stocks in its global benchmarks

Global index compiler MSCI said on Thursday it will sharply increase the representation of Chinese stocks in its global benchmarks.The inclusion factor of yuan-traded A shares will be raised to 20 per cent from the current 5 per cent in MSCI’s indexes in three steps, the New York-based index compiler said in a statement, with the full increase in effect by November.“On completion of this three-step implementation,” the indexer said, “there will be 253 Large and 168 Mid Cap China A shares,… Source link

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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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