China’s Weight in Emerging-Market Index Drops to Record Low
- Chinese stocks lost almost $4 trillion in value since 2021
- Current weight in MSCI gauge erases gains of A-share inclusion
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China’s share of a key emerging-market equity benchmark dropped to a record low, highlighting how a bearish outlook for the world’s second-largest economy is diverging from the rest of an asset class it once dominated.
The Chinese stock market accounted for 23.77% of the MSCI Emerging Markets Index as of Dec. 31, according to Bloomberg calculations, while Goldman Sachs Group Inc. put the latest weight at 26.4%, citing FactSet data. Either way, this is the lowest since 2017, when the New York-based firm announced the addition of China’s mainland stocks, so-called A shares, to the index. The current weight is about 16 percentage points below the country’s peak weight in 2020.