Last week it was announced a group of large capitalization Chinese company stocks were allowed to be added to a very important global index, the MSCI Emerging Market index. This is great news for China and super news for those following our David Cameron talks from earlier this year.
China added to MSCI Emerging Market Index
The fourth time really is a charm, as MSCI (Morgan Stanley Capital International) – most prominent and well known International Index provider – allowed a group of over 200 stocks to EVENTUALLY be added to their MSCI Emerging Market Index. The total inclusion will take several years but is a huge positive for China’s acceptance as a valid economic capital market.
Certainly China has a different social system than the USA, however, if David Cameron is only half correct in his thoughts, embracing rather than shunning China will have positive effects for decades to come. The addition of China stocks into the MSCI Index may be the first step of many future positive ones to come.
We began a detailed review in our latest Newsletter on International and Emerging Markets but it was shoved tot he floor by our Residential Real Estate Price Movement article. Everything happens for a reason. This recent announcement is a great addition to the facts and research we were including, look for more abbreviated information to come soon here with the full article(s) to follow in our Next Newsletter!
Have a Great “Mutually Prosperous” Day!
John A. Kvale CFA, CFP