China Index-Trackers to Double Down on Alibaba as Stocks Slide
- ADR members have outperformed MSCI China since their inclusion
- Addition to MSCI to broaden investor base: Enhanced Investment
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Global investors are about to get a double dose of Chinese equities that have provided a haven, of sorts, from the nation’s stock slump.
Alibaba Group Holding Ltd. and 12 other American Depository Receipts will have their full value included in MSCI Inc.’s indexes from the close on Tuesday, six months after half their free float-adjusted market capitalization was added to the gauges. The shares are down 5.6 percent on average from then through last week, beating the MSCI China Index’s 8.1 percent drop. Losses have been even worse on the mainland, with the Shanghai Composite Index tumbling 18 percent for the world’s second-steepest decline.