Why a surging Chinese Stock Market has Hammered the ASX200

Nicholas Forsyth

Market Matters

Fund managers worldwide have a certain amount of money to invest in shares, bonds, property etc. Significant moves can occur in equities when these “masters of the universe” decide to switch, for example 1% of their bond holdings into equities. On June 9th the MSCI Inc. will make the decision on whether China’s shares can be included in the MSCI Index, if the decision is yes, literally billions of dollars will pour into the Chinese equity market – The MSCI Index is used as a common benchmark for 'world' or 'global' stock funds. If China becomes part of the MSCI Index, initially money is likely to flow into the China market from other equity markets as opposed to out of other asset classes. The Chinese equity market is already the second largest in the world worth over $9trillion.(VIEW LINK)


Nicholas Forsyth
Director
Market Matters

Market Matters is an online investment and share trading advisory service designed for those that want to take their wealth further. We specialise in advice for active share market investors, including those new to the markets or those with a Self...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.