Here are how some key China ETFs fared ahead of the decision: IShares MSCI Emerging Markets (EEM) fell 1.1%, iShares China Large-Cap (FXI) 1.1% and iShares MSCI China (MCHI) 0.8%.
KraneShares Bosera MSCI China (KBA), launched in March 2014, holds mainland stocks that could benefit from the MSCI inclusion of Chinese A-shares.
Wall Street had been watching with interest for the decision, since dozens of funds — including $32 billion iShares Emerging Markets (EEM) — track or are benchmarked to MSCI Emerging Markets Index.
MSCI Emerging Markets already includes Hong Kong shares.
Index provider MSCI on Tuesday decided to include mainland China stocks, or A-shares, in its global emerging-market benchmark index.
Yuan Gains as MSCI Accepts China A-Shares After 3 Years of Denial
The Chinese Yuan appreciated against its major peers, as expected, after MSCI ruled to include 222 China A-shares in its emerging markets index.
As Currency Analyst and China financial news specialist Renee Mu mentioned, Chinese markets were awaiting MSCI’s decision as approval could have a few impacts.
The decision crossed the wires outside of Shanghai Stock Exchange (SSE) hours.
SSE will open for trading later today between 1:15 to 1:30 GMT, giving local markets a chance to respond to the news.
Talking Points:Yuan gains as MSCI ruled to include Chinese shares in its EME indexThe announcement crossed the wires following three years of rejectionMore volatility could come at Shanghai Stock Exchange market openNeed help turning China news-flow into an actionable strategy?
collected by :John Locas