Contributed by Brad Sebion, Moneyandtrading.com, SGT Report:
At the end of June, the Morgan Stanly Capital International (MSCI) global equity index gave investors a little more confidence to put their money in the Chinese economy. Starting in June of 2018, over 200 of China’s A Shares will be scaled into the MSCI index over a span of two years.
This process has been talked about for some time. Many in the investing world, rightfully so, question the authenticity of some Chinese companies and their accounting practices. Being added to the MSCI index will add credibility to these investments. With a large backing from Black Rock, this deal was pushed through.