MSCI adds 14 overseas-listed Chinese firms to emerging market index

MSCI will add 14 overseas-listed Chinese firms – including Alibaba Group and Baidu – to its influential MSCI Emerging Market index on December 1, Reuters reported, citing a statement from the company. Analysts estimate the rebalancing could trigger up to US$70 billion in net flows into the group of stocks over the next half year and bump up China’s weight in the index by three percentage points to 26% in the process. Overseas-listed Chinese firms also comprised the lion’s share of 18 securities added to MSCI’s China Index. MSCI chose to exclude mainland-listed A-shares from its global indices in June, shortly before a dramatic selloff ended a months-long rally in China stocks.