China is among the leaders of emerging markets: the weight of China in the MSCI Inc. benchmark increased to 27.8%
Kyiv • UNN
China increased its weight in the MSCI Emerging Markets Index to 27.8%. This was due to a $3.2 trillion increase in the value of Chinese stocks following the US Federal Reserve's monetary easing and China's stimulus measures.
The increase in China's weight was due to the rise in the value of its stocks by $3.2 trillion since September 18, when the US Federal Reserve gave the green light to global monetary easing, and China responded with a set of stimulus measures. At present, Chinese stocks have the potential for further growth, according to Bloomberg , UNN .
Details
Over the past 8 days, China has regained the influence it had lost over 10 months in emerging markets. The country's weight in the MSCI Inc. emerging market equity index rose to 27.8% at the end of September. This is the highest level since November 2023, Bloomberg reports. The corresponding gains are due to the growth of Chinese stocks by $3.2 trillion.
This followed September 18, after the US Federal Reserve gave the green light to global monetary easing. China, in turn, has stepped up stimulus measures, such as significant interest rate cuts and financial support measures, to revive the country's sluggish economy.
Mark Hefele, Chief Investment Officer at UBS Global Wealth Management, believes that Chinese stocks can still rise, but sustainable reforms are needed to sustain the rally. The expert expects “several rounds of fiscal stimulus worth 2-5 trillion yuan, focused on affordable housing and social security investments.
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