MSCI, a us company that creates stock indices, has had cause to beautiful celebrations in some chinese companies listed in the stock Exchange, Tuesday, may 15. It has revealed the list of the 234 companies that, for the first time, will be included in its emerging markets index.
This decision, technical in appearance, is of paramount importance. After the introduction of a second list of chinese companies in October, the chinese Exchanges are going to receive, so automatic, 2.5 billion dollars of foreign investments. And, very probably, at least ten times more expected to follow in the wake.
Little known to the general public, the companies that provide the stock market indices have gained considerable importance in recent years. Their decisions are at the heart of the geopolitics of finance, in the directing of the flow of several billion dollars, depending on whether they include or not a country or a sector in certain of their indexes.
The rules of the chinese Exchanges until now were deemed too abstruse, with significant restrictions on foreign capital. MSCI thus used only companies present at the stock Exchange of hong Kong. After four years of consultations, she eventually chose to take into account companies listed on the place of Shanghai. “We have a certain power [in the markets], but we do not abuse “, she defends Sebastien Lieblich, head of research at MSCI.
“Lot of lobbying ”
After China, one of the major questions is whether saudi Arabia could be introduced in the emerging markets index of MSCI. “We are all the time a lot of lobbying, China, Korea, elsewhere, says Mr. Lieblich. Our decisions, which are made on technical criteria, have political repercussions. “
The index provider are not new, but their weight grows….