Limited impact on Malaysia and others from China’s MSCI inclusion

Ambank Group Research head and chief economist Anthony Dass(inset filepic), for one, noted that given the date of the Chinese stocks

PETALING JAYA: As investors digest the implication of China’s impending entry into the Morgan Stanley Capital International’s (MSCI) global emerging markets (EM) benchmark index, analysts say the decision by United States-based index provider MSCI to include Chinese stocks from next year will only have a limited impact on other EM shares, including those in Malaysia.

They note that while the entry of Chinese stocks into the MSCI Index, which is the world’s most influential compiler of share indices, will attract funds from investors worldwide, the potential outflow from the EM markets as a result of the change will likely be short-term and insignificant.