papadad111
Thinks s/he gets paid by the post
- Joined
- Oct 4, 2007
- Messages
- 1,135
It's not a vanguard effort. It is the MSCI EM index that is considering adding China listed AShares.
Note: Back In November 2015 the MSCI EM index added some 13 ? Chinese companies - those shares added are traded as US listed companies. This is Unrelated to the a-share quest, which are China domestically listed shares that foreigners have had very little access to by past market design.
Whether or not It is a highly manipulated and or regulated market is maybe a red herring to the key issue which is : to not include shares of the worlds second largest and most emerging economy in an EM global index is simply a gap now that those shares "can" be owned globally. IE, To not have global access to the a-shares market represented by the index is equally restrictive.
So, Now that the restriction on ownership has been partially lifted, the index can include, and so should include ...
One could always choose a different vanguard etc. Fund that is ex-China. That would be the best way to play if one did not want direct china exposure.
Note too: Approx half of all listed companies across the globe have some degree of China exposure anyway. It's the second largest economy. We can't ignore it ... Despite the desire to bury heads in sand... China's economic stomach ache is now the world's economic indigestion....
Larger Impact to USA Market - due to rmb currency depreciation , not directly China equity prices.
Our USA market is overvalued and in what is now a fed tightening cycle and market valuation is naturally resetting ...
look out below. 1850 SP500
Note: Back In November 2015 the MSCI EM index added some 13 ? Chinese companies - those shares added are traded as US listed companies. This is Unrelated to the a-share quest, which are China domestically listed shares that foreigners have had very little access to by past market design.
Whether or not It is a highly manipulated and or regulated market is maybe a red herring to the key issue which is : to not include shares of the worlds second largest and most emerging economy in an EM global index is simply a gap now that those shares "can" be owned globally. IE, To not have global access to the a-shares market represented by the index is equally restrictive.
So, Now that the restriction on ownership has been partially lifted, the index can include, and so should include ...
One could always choose a different vanguard etc. Fund that is ex-China. That would be the best way to play if one did not want direct china exposure.
Note too: Approx half of all listed companies across the globe have some degree of China exposure anyway. It's the second largest economy. We can't ignore it ... Despite the desire to bury heads in sand... China's economic stomach ache is now the world's economic indigestion....
Larger Impact to USA Market - due to rmb currency depreciation , not directly China equity prices.
Our USA market is overvalued and in what is now a fed tightening cycle and market valuation is naturally resetting ...
look out below. 1850 SP500
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