FXStreet (Mumbai) – MSCI decided against adding China’s A-shares to its Emerging Markets Index this week, but said it expects to do so at some point in the future.
However, MSCI exclusion has led foreign investor outflow from the Chinese equities. As per the reports, the Chinese equities witnessed USD 7 billion outflows. While the decision may be a blow for the market in the short term, China analysts are still expecting the bull market to keep on going as Beijing adds to stimulus measures to help the sluggish economy.
Consequently, the Chinese markets have ignored the foreign fund inflow. Moreover, stocks in the country’s largest Shanghai market are already up 58% this year.
(Market News Provided by FXstreet)