Tomorrow, June 14th, MSCI will announce how they’re going to handle the inclusion of Chinese mainland companies to their global indices. There’s over $10 trillion in assets currently benchmarked to MSCI’s indexes. The Chinese stock market is largely un-indexed at the moment, even though many Hong Kong-listed companies and ADRs are included in ETFs. The potential ramifications of mainland Chinese companies being added to investable products are tremendous.
I would urge any advisors / investors managing global portfolios to read up on the subject. The very best explainer on the topic comes from my friends at Kraneshares, an authority on Chinese equities and purveyor of several popular China ETFs. I send you there now at the link below: