News

A-share inclusion tipped to boost long-term stocks

A-sharesThe inclusion of Chinese mainland-listed equities, A-shares, in the MSCI Emerging Markets index ought to benefit investors with exposure to long-term development trends. The prediction, by a fund manager at Fidelity International, assumes the inclusion will increase institutional investor participation in China’s stock market. “With the Chinese A-share market primarily dominated by retail investors currently, market movements tend to be driven by short-term market noise and herding behaviour,” said Raymond Ma. “Institutional investors tend to be more focused on finding long-term winners.” MSCI’s inclusion of A-shares will oblige passive funds that track the index to buy mainland-listed equities. Many active managers are expected to follow suit. The two-step process of adding around 234 A-shares to the MSCI index will take place in June and September. ©2018 funds global asia

Executive Interviews

Interview: Money needs a place to go

Mar 11, 2019

Peng Fei, chief investment officer at Wanwei Asset Management, tells Romil Patel about allocating capital across risk factors when asset performance is uncertain and unpredictable.

INTERVIEW: Giving peace a chance

Jan 11, 2019

As US-China tensions escalated in 2018, the leaders of the two economies met in Buenos Aires to agree a truce. Aidan Yao, senior emerging Asia economist at Axa Investment Managers, talks to Romil...

Roundtables

Singapore roundtable: A money magnet

Mar 11, 2019

Our panel discussed why the Singapore Variable Capital Company makes them bullish, what gives the onshore jurisdiction an offshore feel and “blood on the streets” from China’s slowdown. Chaired by Romil Patel in Singapore.

HONG KONG ROUNDTABLE: A sunny picture

Jan 11, 2019

Changes to regulation, US-Sino trade tensions and further steps by China to open its capital markets were some of the topics discussed by our panel. Chaired by Romil Patel in Hong Kong.