GS: There is 60% chance of China’s A shares inclusion in MSCI’s EM index

Goldman Sachs’ analysts out with their take on whether China will be included in the MSCI EM index.

MSCI will make an announcement on the same on June 20

Key Highlights:

There is a 60% probability of inclusion.

Key reasons supporting inclusion:

China has the 2nd largest equity market in the world

Its representation in global benchmarks is low relative to its economic influence

Inclusion would likely see funds inflow of around $210 billion into Chinese stocks over the next five years