The end of a month in which Chinese shares have trounced every other market may appear the perfect backdrop for MSCI, one of a trio of index providers that have an outsized role in shaping the global flow of money.
The New York-based company is set to announce later this week that the weighting of Chinese shares in its Emerging Markets index, which is the benchmark for about $1.9tn of funds, will more than triple by August, according to people familiar with the matter.
A big jump in the weighting would underline how Beijing is opening its capital markets to foreigners despite tensions with Washington, coming less than a year after MSCI admitted Chinese A-shares, or those listed on exchanges in Shanghai and Shenzhen, to its index for the first time. It would also show how concern over the volatility of Chinese stocks and corporate governance have not been an impediment, either.