MSCI, the global index provider, revealed on Thursday that it will be quadrupling the weighting of Chinese mainland shares in its global benchmarks later this year, which may end up attracting more than $80 billion of new foreign inflows to China’s economy, reports Reuters.
Deputy head of China’s securities regulator Fang Xinghai, forecasted that foreign capital inflows to Chinese stocks this year will double to about RMB 600 billion ($89.76 billion).
MSCI also said that it will add Chinese mid-cap stocks to its emerging market benchmark in November, which will boost the number of Chinese constituents.
The announcement could potentially add fuel to a stock market that has jumped over 20% this year, partly on hopes that Beijing and Washington will soon reach a deal to resolve their trade dispute.
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