Mainland China 'A' shares added to the MSCI Emerging Markets Index
The saga of getting China shares into this index has been going on for years ... now its finally happened! A little at least.
- There should be some flow of funds into China shares as a result of this. Amounts as high as $400bn are being bandied about... let's see about that
- It should therefore be a supportive flow for the yuan (what hasn't already been built into the price, the inclusion has been seen as more likely than not this time around)
There are plenty of caveats and hurdles in the decision, MSCI are building up the representation of China shares slowly; I'll have more to come on a separate post a little later.
This via the WSJ will give you an idea of the change .... very small so far:
Go on, give the panda a high five!
