Posted 1/8/2024, 4:47:32 PM
China Share of Emerging Markets Index Plunges to Record Low on Economic Woes and Investor Exodus
- China's share of the MSCI Emerging Markets Index dropped to a record low of 23.77%, down from a peak of 42% in 2020
- Investors are reducing exposure to Chinese stocks due to economic struggles, regulatory risks, and lack of confidence
- Factors like COVID-zero policies, tensions with the U.S., and property sector crisis contributed to sentiment shift
- Loss in China's weight is compensated by gains in India, Taiwan, South Korea, Brazil and Saudi Arabia
- Rebound in Chinese stocks likely to be short-lived; valuations and positioning near historical lows