MSCI embraces China’s newly-launched STAR tech stocks


FILE PHOTO: The MSCI logo is seen in this June 20, 2017 illustration photo. REUTERS/Thomas White/Illustration/File Photo

SHANGHAI (Reuters) – MSCI (MSCI.N) plans to include stocks listed on China’s newly-launched, Nasdaq-style STAR market in its indexes from next month, as international investors seek opportunities in the world’s second largest economy.

Beijing is continuing to open up its financial markets despite the ongoing Sino-U.S. trade spat, while major index providers, including MSCI, FTSE Russell and S&P, have begun or are stepping up index inclusion of China A-shares.

Stocks listed on China’s STAR market will be included in the MSCI China Indexes and their derived indexes, if they meet eligibility requirements, MSCI said in a statement on Thursday.

The move could potentially improve liquidity in the market and expand foreign investors’ access to the country’s tech sector, to which Beijing is providing policy support to reduce its foreign dependence.

China launched STAR in July, as Beijing seeks tech self-sufficiency amid the bruising trade war with the United States.

MSCI said the inclusion is separate from adding China A shares to MSCI China and the MSCI Emerging Markets Indexes.

Following MSCI’s announcement, 32 of the 33 stocks on the STAR market gained ground on the day.

Reporting by Luoyan Liu and Andrew Galbraith; Editing by Alexander Smith

Source link

Articles You May Like

Angels employee working with feds: ‘Right thing to do’
The migrant caravans: A common road toward different fates
Afghan museum restores Buddhist history, one broken piece at a time
Factbox: Nearly all goods traded by U.S. and China will have tariffs by December 15
GSK recalls popular heartburn drug Zantac globally after cancer scare

Leave a Reply

Your email address will not be published. Required fields are marked *