Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

MSCI embraces China's newly-launched STAR tech stocks

Published 10/10/2019, 03:48 AM
Updated 10/10/2019, 03:51 AM
MSCI embraces China's newly-launched STAR tech stocks
UK100
-
MSCI
-
MSCIEF
-

SHANGHAI (Reuters) - MSCI (N:MSCI) plans to include stocks listed on China's newly-launched, Nasdaq-style STAR market in its indexes from next month, as international investors seek opportunities in the world's second largest economy.

Beijing is continuing to open up its financial markets despite the ongoing Sino-U.S. trade spat, while major index providers, including MSCI, FTSE Russell and S&P, have begun or are stepping up index inclusion of China A-shares.

Stocks listed on China's STAR market will be included in the MSCI China Indexes and their derived indexes, if they meet eligibility requirements, MSCI said in a statement on Thursday.

The move could potentially improve liquidity in the market and expand foreign investors' access to the country's tech sector, to which Beijing is providing policy support to reduce its foreign dependence.

China launched STAR in July, as Beijing seeks tech self-sufficiency amid the bruising trade war with the United States.

MSCI said the inclusion is separate from adding China A shares to MSCI China and the MSCI Emerging Markets Indexes.

Following MSCI's announcement, 32 of the 33 stocks on the STAR market gained ground on the day.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.