Only a tiny slice of the selected stocks’ market capitalization will be added, and it will join in two steps: in June and September. That means A shares will initially represent about 0.39 percent of the weighting on the MSCI Emerging Markets Index next month.What will investors be taking on? Zhejiang Dahua Technology Co. is another stock in that field.MILITARY:On the other hand, some defense shares have had a rough ride this year. Battery-component makers Zhejiang Huayou Cobalt Co. and Jiangxi Ganfeng Lithium Co. are two related stocks being added.PRICEY PICKS:Mainland Chinese stocks have long traded at a premium to those in Hong Kong, and the MSCI list includes some pricey names. Iflytek Co. is valued at 174 times reported earnings, while Jinduicheng Molybdenum Co., which mines and processes an obscure metal used to make steel, trades at 133 times reported earnings.

Source: The Star May 15, 2018 03:00 UTC