Wednesday, 13 December, 2017

Leading US-based index to include Chinese stocks for 1st time

Jeannie Matthews | 21 June, 2017, 07:08

MSCI plans to add the A shares in a two-step process next year, following reviews in May and August 2018.

"Oil is the main driver" for regional losses, said Tareck Horchani, head of Asia-Pacific sales trading at Saxo Capital Markets.

MSCI Inc. has excluded China's "A" shares from its emerging markets index for three years in succession but analysts are hopeful Beijing will be lucky the fourth time round.

Why MSCI inclusion matters to China?

"We expect the Chinese government to continue to open up the financial markets gradually", Ulrich added.

We are now into the third year of discussion and debate on the inclusion of China's domestic equity market to the major indices. It cut the number of eligible Chinese stocks by about half and said shares halted for more than 50 days in the past 12 months wouldn't be eligible. That's partly due to trade limits under the stock connect program that links Hong Kong's stock market with that of Shanghai and Shenzhen, Chia said.

MSCI's bellwether emerging-market index has offered exposure only to Chinese shares traded in Hong Kong and the US, such as Alibaba (BABA), Baidu (BIDU) and Tencent Holdings (TCEHY). This change to the original proposal brings the number of China A shares in the pro forma MSCI Emerging Markets Index from 169 to 222.

MSCI first consulted worldwide stock market practitioners in 2014 about whether the time has come for them to include A-shares in the MSCI EM Index.

Fleury among players exposed for Vegas NHL expansion draft
Louis Blues head coach Mike Yeo looks on as his team plays the Nashville Predators during the third period at Scottrade Center. The 2017 NHL Expansion Draft will take place Wednesday as the Las Vegas Golden Knights begin to fill out their roster.

In the long-run, being part of the MSCI means increased and relatively stable inflows in the Chinese stocks, which will in turn help decreasing the volatility in their values and restore long-term investors' confidence in well-performing stocks operating in the world's biggest emerging market.

The drop took US crude down 20 per cent from its recent high and thus into official bear territory, a red flag to investors who follow technical trends.

In 2017, internationally-listed Chinese stocks have proven a better bet than their local counterparts.

The Singapore stock market headed south again on Tuesday, one session after it had ended the three-day slide in which it had given away more than 25 points or 0.7 percent.

China's offshore yuan was little changed at 6.8237 per dollar on Tuesday.

The MSCI has refused to include the Chinese stocks in its worldwide benchmarks because they are subject to strict capital controls by the Chinese government, trading restriction and long interruptions in times of bearish market. For example, there are new rules that limits under what circumstances and for how long Chinese companies can halt trading, a major issue a year ago when hundreds simply suspended trading during a drop in the market early in 2016.

A decision to move Nigeria from frontier status to standalone was delayed to November.

The most recent disappointment for the Chinese market came last June, despite high expectations at the time as MSCI announced it was working with Chinese regulators. Restrictions on currency trading in 2015 prompted the review. Partly because of such pressures, all types of foreign investors now own only a little more than 4 percent of the market.

Recommended

  • Top Republican Congressman, 3 Others Shot When Gunman Opens Fire

    But he will remain in the hospital for "a considerable period of time " and faces additional operations. On Wednesday night, Trump, accompanied by first lady Melania Trump , visited Scalise at the hospital.
    Sen. Kamala Harris:

    Sen. Kamala Harris: "When we use our voices, we've got the power".

    Over on CBS' Late Show , Stephen Colbert brought up Miller's treatment of Harris in his monologue about Sessions' testimony. Bila fired back and noted that all of the women around the table of " The View " interrupt one another constantly.
    John Avildsen, Director Of Rocky, Dies At 81

    John Avildsen, Director Of Rocky, Dies At 81

    Share with Us - We'd love to hear eyewitness accounts, the history behind an article, and smart, constructive criticism. He received an Oscar nomination in 1983 for his documentary short film Traveling Hopefully .
  • NASA telescope finds 10 more planets that could have life

    One of Kepler's other big surprises was a profusion of planets intermediate in size between Earth and Neptune. All of Kepler's observations were in a small patch of sky between the constellations of Cygnus and Lyra.
    World Champions Germany Edge Past Australia

    World Champions Germany Edge Past Australia

    Mesut Ozil has not made the trip to Russian Federation as Germany have named a number of fringe players in their squad. The gulf in quality was clear, and yet the callow Germans discovered the perils of not killing off a game.

    Friend says Trump is considering 'terminating' Mueller

    Comey and Mueller famously rushed to a hospital to prevent Attorney General Ashcroft from signing the reauthorization. In short, Comey and Mueller worked in tandem in the defining moment of Comey's stint in the Bush Justice Department.
  • Saudi Navy Captures Elite Iranian Troops On Seized Boat

    Saudi Navy Captures Elite Iranian Troops On Seized Boat

    The statement came two days after Iran accused Saudi Arabia of shooting and killing one of its fishermen. Tensions between Sunni-led Saudi Arabia and Shiite-dominated Iran are chronic.
    Russian Federation  defeats New Zealand at 1st Match of FIFA Confederations Cup

    Russian Federation defeats New Zealand at 1st Match of FIFA Confederations Cup

    The goal was initially awarded to Denis Glushakov before it was ruled as an own goal upon review. Still, the Russians secured the three points they needed to.
    Mike Pence hires outside counsel to deal with Russia-probe inquiries

    Mike Pence hires outside counsel to deal with Russia-probe inquiries

    He dismissed as "phony" the idea that his campaign colluded with any Russian effort to sway the 2016 election . But he did not hire a counsel during the investigation and subsequent impeachment of President Bill Clinton.
  • Shot US Congressman Scalise in Need of Additional Surgery

    Shot US Congressman Scalise in Need of Additional Surgery

    The alleged gunman, James Hodgkinson of Belleville, Illinois, died shortly after the incident following a shoot out with police. But Scalise still faces multiple surgeries, a prolonged hospital stay and a lengthy recovery, Sava stressed.
    Six police killed in attack on Afghanistan police headquarters

    Six police killed in attack on Afghanistan police headquarters

    US Defence Secretary Jim Mattis said on Monday he would present options on Afghanistan to President Donald Trump "very soon". Taliban took responsibility of the incident and said that Afghan soldier who killed USA soldiers belonged to Taliban group.
    Back-to-back 68s lift Aditi to 14th on LPGA

    Back-to-back 68s lift Aditi to 14th on LPGA

    Moriya, the sister of world No. 1 Ariya Jutanugarn , is alone in fifth at nine-under 133, three shots back of Henderson. Henderson birdied Nos. 12 and 13 and closed with five pars. "My irons were really good", the South African player said.

Britain kicks off Brexit negotiations with EU Britain kicks off Brexit negotiations with EU That would raise the odds of talks collapsing, meaning when the U.K faced a period of uncertainty and sweeping tariffs. Barnier has said talks on a trade deal can not even start until sufficient progress has been made on the other issues.

Whole Foods swoop sends Ocado soaring on hopes of Amazon tie-up Whole Foods swoop sends Ocado soaring on hopes of Amazon tie-up But a few other things might change eventually, as Amazon seeks to change its new spouse's reputation for pricey products. More hubs mean quicker and fresher delivery, which will bolster Amazon's existing grocery delivery service, AmazonFresh.

1 dead in officer-involved shooting at Magnuson Park Our historic police reforms, from de-escalation training to civilian-monitored force review, are in place to address such crises. Police are also trying to determine whether the children who were present in the apartment at the time witnessed the shooting.

Russian Federation probe causes tension among top officials at Justice Department Russian Federation  probe causes tension among top officials at Justice Department Rosenstein has been overseeing the Russian Federation probe since shortly after Attorney General Jeff Sessions recused himself. The official demanded anonymity because the official was not authorized to be named discussing the deliberations.

Cosby alternate juror 'probably' would have convicted Cosby alternate juror 'probably' would have convicted Steele, the district attorney for Montgomery County in Pennsylvania, has said he will seek a new trial against Bill Cosby . Both men saw allegations of sexual harassment and lawsuit settlements rise from the past and smash their current careers.

UK leader May strikes tentative deal with N Ireland party May had called the election in order to consolidate her mandate to negotiate Britain's exit from the Europe Union. The gamble failed, with the Conservative party losing its strong polling lead over the course of the campaign.

Militants buried in tense Kashmir Authorities have chose to impose restrictions in Srinagar and other sensitive places in the Valley on Saturday. Sources said the Army was checking vehicles in the area and the auto did not stop for checking.

Scalise still in critical condition but improved after second surgery Scalise still in critical condition but improved after second surgery Aguilar plays outfield for the Democratic team; before the shooting, Scalise was slated to play second base for the Republicans. Hodgkinson sprayed rifle fire at Republican congressmen on Wednesday as they practiced for a charity baseball game.

McIlroy hits back after accused of being 'bored' by Elkington McIlroy hits back after accused of being 'bored' by Elkington Rory McIlroy has hit back at criticism of his US Open performance after he was accused of being "bored" of playing golf . This caused Steve Elkington, who won the 1995 PGA Championship , to make the following comment on Twitter.

Team NZ easily take first race Team NZ easily take first race Two races are scheduled on both days this weekend, beginning at 14:12 local time (1:12pm ET). Emirates Team New Zealand faces Oracle Team USA in the America's Cup sailing m.

Gareth Bale savours Real Madrid's Champions League final win in Cardiff Gareth Bale savours Real Madrid's Champions League final win in Cardiff They came away as losers for the seventh time in nine European Cup finals having also lost to Barcelona in 2015. Juventus equalised in the 27th minute with a volley by Mandzukic .

Mistrial declared in Cosby case Mistrial declared in Cosby case In Cosby's case, that could have involved the more than 60 other women who have accused him of assaults dating to the 1960s. But prosecutors immediately said they would seek a second trial, which O'Neill suggested could start within four months.

Gunman's Widow Hadn't Spoken With Him Before He left Home Contacted by AL.com on Friday, Brooks said he has been told to refer all questions to the Capitol Police for comment. He spewed left-wing talking points on Facebook , consistently railing against Republicans and the wealthy.

Teams draft local baseball players Teams draft local baseball players Senior righty Nick Eicholtz , who was drafted in the 13th round a year ago after his junior season, was also undrafted. Wenson was also drafted previous year , in the 39th round and opted to return to school.

Trump set to roll back Obama policy on Cuba Trump set to roll back Obama policy on Cuba Republican Senator Marco Rubio, who was played a key role in pushing for Trump's changes, was expected to attend along with U.S. The trips were made easier by the resumption of scheduled commercial air service from the USA for the first time in decades.