Foreign investors bet billions on China blue-chips joining MSCI index — Volumes by 56 percent in one month

Peace and Freedom


FILE PHOTO: A man looks at an electronic board at a brokerage house in Shanghai August 31, 2009. REUTERS/Aly Song/File Photo
By Samuel Shen and John Ruwitch| SHANGHAI

Foreign investors are betting U.S. index publisher MSCI will finally agree to include China-listed shares in its emerging markets benchmark this week, stepping up their buying of Chinese blue-chips that could gain from inclusion in the index.

In May, overseas investors bought a net 19.8 billion yuan ($2.90 billion) of mainland shares via the “Connect” schemes that link the Hong Kong and China markets, pushing up volumes by 56 percent from the previous month.

 A Chinese national flag flies in front of the China Construction Bank (CCB) Tower at Hong Kong’s Central business district Dec 26, 2014. (Reuters file photo)

“We believe this was due to foreign investors’ expectation that MSCI will…

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