MSCI’s China Index Proposal May Lure $4 Billion to Shares
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MSCI Inc.’s proposal to include China’s mainland-traded shares in its emerging-market indexes may lure $4.4 billion in funds, with China Merchants Bank Co. and Agricultural Bank of China Ltd. among the top beneficiaries.
The estimate of inflows into China’s so-called A shares by analysts at Goldman Sachs Group Inc. compares with the $52 billion of approved quotas through China’s Qualified Foreign Institutional Investors program. China Merchants Bank, AgBank and Ping An Insurance Group Co. would probably receive the most inflows under MSCI’s proposal, Societe Generale SA wrote in a report dated yesterday.