MSCI Shakes Up Indices

The transcript discusses the phased inclusion of China A shares in the MSCI Emerging Markets Index, highlighting its significance due to the large amount of passive money tracking these indices. It covers foreign investment trends, the inclusion of small and mid-cap stocks, and the market's reaction to these changes. The transcript also touches on the risks associated with smaller Chinese companies entering foreign portfolios and the anticipated changes in the Hang Seng Index, including the potential removal of AAC Technologies and the inclusion of Matewan.

What is the expected percentage increase for A shares in the MSCI Emerging Markets Index during the third phase?

• 3.5%

• 4.1%

• 5.0%

• 4.5%

Which type of Chinese companies are being included in the MSCI index for the first time?

• Blue chips

• Small caps

• Large caps

• Penny stocks

What was the reaction of the Chinese market to the MSCI announcement earlier this year?

• A drop in foreign investments

• A decline in stock prices

• A rally in the market

• No significant change

What is a concern for foreign investors regarding the inclusion of smaller Chinese companies in their portfolios?

• High volatility

• Lack of transparency

• Sudden bankruptcies

• Increased competition

Why is it unlikely for Matewan to be added to the Hang Seng Index?

• It is not a tech company

• It is already part of another major index

• It lacks an 18-month trading history

• It is not a dual class share stock