Global investors take their positions ahead of China’s inclusion in MSCI index
The phased addition of A shares in MSCI’s Emerging Markets Index will prove to be a major catalyst for foreign inflows into China’s stock markets, says top JPMorgan banker
Global investors are gearing up to invest in China’s stock markets as their confidence grows following the accelerated deregulation of the country’s financial sector and inclusion of A shares in the MSCI’s emerging markets benchmark next month, according to investment bank JPMorgan.
Filippo Gori, head of sales and marketing for markets and investors services for Asia-Pacific at JPMorgan, said global investors’ understanding of China has deepened after one of China’s top economic advisers Liu He’s visit to the US in March.
“Investors are impressed by how knowledgeable he is and by his understanding of what foreign investors are looking for,” he said.
“All the policies the [Chinese] government recently announced have improved foreign investors’ perception of China despite concerns over the escalating US-China trade conflicts,” said Gori. “They think China is moving in the right direction by opening up the market.”
China is in the process of opening up its securities sector to foreign players and will allow them to own a maximum 51 per cent stake in securities joint ventures.
