Tuesday, 31 May 2016

Foreign fund inflows into China stocks jump as MSCI decision looms

The largest China-focussed exchange traded fund (ETF) denominated in the yuan currency drew its biggest daily inflows in the past year on Monday, partly driven by expectations of China A shares being included in a global benchmark.

The inflow of 2 billion yuan ($303.89 million) into the CSOP FTSE China A50 exchange-traded fund accounted for around 10 percent of the fund's total asset under management (AUM).

The rush of funds came just as index provider MSCI started a third round of consultations with investors over whether to include China's yuan-denominated A shares in its emerging markets benchmark.

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