China ETF Tumbles After MSCI Snubs China For 2nd Time, Delays Inclusion In Emerging Market Index
By Tyler Durden
While nowhere near comparable to the euphoria from last year, when hopes that China would be included in the MSCI emerging market index led to a tremendous rally in Chinese stocks on expectations of substantial inflows once asset managers had to allocate funds to China…
… today’s silver lining for the US bulls, and certainly China mainland investors, was the expectation that after having snubbed China last year, MSCI would at least include it today.
Alas no such luck, because moments ago Bloomberg reports that…
- MSCI TO DELAY CHINA A-SHARES IN EMERGING MARKETS INDEX
As MSCI notes there are “significant improvements” in accessibility of the China A shares market for global investors and MSCI will retain China A shares inclusion proposal as part of 2017 market classification review, however not yet. MSCI also doesn’t rule out potential off-cycle announcement should added significant positive developments occur before June 2017.
They won’t.
Sorry China, and better luck in 2017. Meanwhile, the China CSI-300 ETF tracker is tumbling as all those who had frontrun an event which Goldman said had a 74% probability of happening, unwind their positions.
Source: China ETF Tumbles After MSCI Snubs China For 2nd Time, Delays Inclusion In Emerging Market Index
