China Added to MSCI

:+1:​​​​​​ :+1:

pa whats the word on ashr?

It’s just marketing nonsense from MSCI to act like they aren’t mega market manipulators. It was becoming too transparent, them pretending like a 7 TRILLION stock market didn’t exist…so now they give the world’s second largest stock market a 0.7% weight. MSCI “global indices” have zero credibility.

https://www.bloomberg.com/news/articles/2017-06-20/china-stocks-win-msci-entry-as-6-9-trillion-market-goes-global

Many investors use MSCI indexes as return benchmarks, or tie investment products to these indexes. How can investors be confident in MSCI’s product if it includes stock markets that condone rampant corruption and insider trading? It has been only recently that state run funds have been found to manipulate stock prices for reasons as trivial as providing favorable trading levels to groups of political insiders.

China has made positive steps to improve their stock market integrity. MSCI’s recent decision to include Chinese A Shares in its Emerging Markets Index reflects this. However, the improvement must be persistent. China must show willingness to enforce adequate standards over a long period of time. That is partly why only a small weighting in the index is justified at this time.

So, contrary to what you think, MSCI’s responsible and cautious approach adds to its credibility and gives customers additional trust in its methodology. Furthermore, it validates China’s reforms and encourages the country to take further steps towards global integration.

Damn ohai whipping out a boss post like that, well said. China is certainly on the rise thats for sure, obviously there is still plenty of risk there as well. Apparently PA believes they should have a 50% weighting? Why not dip your toes in the water before plunging in

Baby steps

Try to get the Charter. You might really learn something.

#goodluck

Then remove the USA from the index.

MSCI indices are garbage, Chinese equities exist, they should be in the index. If you don’t want to invest in them, and they underperform, then you beat the index. But in reality, they have outperformed everything for 25 years. The reason they are not included in the indices is market manipulation (aka rampant corruption); the US wants to slow down the rise of China, manipulate them into doing what the US says, “then we will allow your equities to exist”, and investment management doesn’t want that outperforming equity market in the benchmark.

But it’s not going to work, the US will continue to collapse, and CN will continue to increase in influence, and one day they will make the indices, and not include the corrupt US. :+1:

They should have the weighting that exists in reality, no market manipulation (which Ohai favors).

Wow, you really are an idiot.

And yet this “idiot” recognizes this is about power/manipulation while you remain in a dream world. :grin:

“The decision makers at S&P Dow Jones Indices LLC, MSCI Inc., FTSE Russell and the like surely don’t see themselves as all-powerful. They’re just trying to build accurate representations of the markets that investors can invest in. But their decisions increasingly shape those markets as well.” When MSCI and S&P Rule the World

Wrong, if they were trying to build accurate representations of global equities, they would include all investable global equities, period. It is as the title of the article implies, about power.

#ChineseAccounting

PA is honestly the most hilarious person on this board. With a straight face he will tell you the US has rampant market manipulation while glorious China has the most earnest markets known to man. He will also piss on you and tell you its raining.

If they all the sudden made 20% of the index China would that not distort markets as well?

#FTFY

Straw man, typical American nonsense. Of course I never said anything of the sort. The US is corrupt as hell, and lies constantly about how not-corrupt they are, CN does what it does (guides markets) and is straight about that.

Markets are distorted now, China equities in the true weight that they exist (I have no clue if that is 20%) would “undistort” markets. Americans are always saying “market manipulation will never work bla bla bla”, well they are right, it’s not going to work for them.

So I was looking at H1 performance this morning, up 17.4% YTD (11.0% in the last quarter), yet the world benchmark was only up 4% in the last quarter. For a minute I was thinking “did I do”? And then I realized, sh!t duh, it’s because I hold 50% Ashares. So I rocket up and unfairly beat the bench, which doesn’t reflect ANY Ashares.

Garbage US-manipulated benchmarks.

^bro, vs US t-bills you’re outperforming by 17.2%!

Someone give this guy some money to manage!

^Only if you believe in the myth.

#ChineseAccounting

^ ADHD people: topic is global benchmarks are garbage, my bench is not FI, accounting has nothing to do with it. :bulb:

Use brain cells please, thanks.

Are we really talking about L1 topic Risk vs Return here?