China’s weight in MSCI’s EM index soars to highest level since November amid sharp rally in stocks

Oct. 2, 2024 - Mint

A mind-boggling rally over the last eight days has brought China back to the spotlight in the emerging market pack. The recent surge has pushed China’s weightage in the MSCI’s benchmark for emerging market equities to 27.

8% as of September, its highest level in over 10 months or since November 2023, suggests data compiled by Bloomberg. Beijing in an attempt to revive the economy and the stock market announced aggressive measures, ranging from outsised rate cuts to fiscal support.

However, domestic brokerage Kotak Institutional Equities sees a limited impact of the recovery in the Chinese economy and markets on India. The brokerage suggests that Foreign Portfolio Investment (FPI) flows to India, both active and passive, may moderate depending on the strength of the Chinese market rally.

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