FYI: Ten billion dollars! Sixty-seven billion! Four hundred billion! As index providers took baby steps last year toward adding Chinese shares to their benchmarks, heady estimates abounded for the ensuing wave of foreign buying.
This year, while inclusion has accelerated, a more-modest reality has set in.
This week, index giant MSCI Inc. MSCI -0.63% confirmed its inclusion factor—the weighting it gives Chinese stocks relative to their market capitalization—would rise to 15% from 10% for the flagship Emerging Markets Index at the end of this month. Yet overseas investors have resumed selling Chinese equity through the Hong Kong Stock Connect platform, unloading about 15 billion yuan ($2.13 billion) this month so far, net of purchases.
Regards,
Ted
https://www.wsj.com/articles/the-index-giants-wont-save-chinese-stocks-11565352154
