Chinese asset managers are readying the launch of index funds that will track a group of mainland stocks due to be included in MSCI’s emerging market benchmark later this year’s reports Reuters.
Truvalue Asset Management Co’s MSCI China stock index fund will be the first product to enter the MSCI benchmark containing yuan-denominated Chinese stocks, or “A-shares”. The possibility for investors to bet on a wider range of high-value Chinese stocks is expected to increase interest in the Chinese banking and consumer sectors, with many fund managers hoping to offer their services through new products.
Chen Long, fund manager at Truvalue, has estimated that the MSCI inclusion announcement will initially stimulate 80 billion yuan ($12.5 billion) of investment into the Chinese economy. Upon full inclusion of A-shares into the index, a further 2.5 trillion yuan could be generated.
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