China Macroeconomics & Academia

Christopher Balding

Macroeconomics

<p>It was announced early Asia morning that the MSCI would not be including China in the Emerging Market Index.  While China had clearly hoped for inclusion at the annual, there were signs pointing to this as the outcome.  There are a number of important market factors to include going forward.</p><p>First, it was MSCI exclusion that triggered the July 2015 collapse in A-share prices.  Though no Chinese indexes are nearly as frothy as in June 2015, there will be significant additional downward pressure on…</p>

It was announced early Asia morning that the MSCI would not be including China in the Emerging Market Index.  While China had clearly hoped for inclusion at the annual, there were signs pointing to this as the outcome.  There are a number of important market factors to include going forward.First, it was MSCI exclusion that triggered the July 2015 collapse in A-share prices.  Though no Chinese indexes are nearly as frothy as in June 2015, there will be significant additional downward pressure on…

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What MSCI Rejection Means for Chinese Indexes and the RMB