SHANGHAI: MSCI, the U.S. index publisher, said on Tuesday it will include 234 Chinese large cap stocks in its global and regional indexes on June 1, setting the stage for capital markets in the world's second-biggest economy to get a boost from a potential surge of foreign money.In a quarterly review, MSCI ejected nine companies and added 11 from the proposed MSCI China A Inclusion Index, slightly altering the expected weighting that the Chinese stocks will have in MSCI's emerging market index. It did not explain why some companies were added or removed.The 234 yuan-denominated stocks, or China A-shares, will represent an aggregate weight of 0.39 percent in the MSCI Emerging Markets Index at a 2.5 percent partial inclusion factor during the first step of the China entry. "I am most constructive on consumer, information technology and industrials sectors after the MSCI inclusion," he said. "Thanks to ongoing consumption and industrial upgrading in China, these sectors are likely to deliver sustainable and solid growth in the next three to five years. We expect them to outperform in the medium to long term.

Source: The Star May 15, 2018 08:37 UTC