Fund managers getting jittery about China's EM index dominance
London
CHINA is heading for such dominance in the world's main emerging market (EM) stock index that investors are scrambling for ways to water down the too-many-eggs-in-one-basket risk.
Among the options on offer are standalone China-dedicated funds and even trying to move further away from investment benchmarks themselves.
China - increasingly dominant in all spheres of economics and politics - currently accounts for around 24 per cent of MSCI's emerging market stock index, which is tracked in one way or another by around US$1.6 trillion in investments.
This means that a losing day in Shanghai can mean a losing day for emerging market investors a…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Bank of Korea chief signals readiness to deal with volatile currency moves
Banks told to anticipate risks from using AI, machine learning
Earthquake jolts southern Japan’s Ehime, Kochi prefectures
Climate impacts set to cut 2050 global GPD by nearly a fifth
G7 foreign ministers meet in Italy amid calls for sanctions on Iran
IMF calls for fiscal restraint in year with most elections ever