New | Mark Mobius sees China stock market as ready for MSCI inclusion
Index provider will say in June whether China's stock market is eligible after rejecting it last year
Mainland China is starting to convince international money managers that its US$7.8 trillion stock market is ready for MSCI's indices.
Templeton Emerging Markets Group's Mark Mobius, who was against inclusion as recently as March, became the latest convert on Tuesday, saying his funds are now buying Chinese shares.
For the Chinese authorities, who met with money managers in the US two months ago to make the case for MSCI inclusion, gaining acceptance is part of a broader effort to establish the stock market and boost the yuan's role in global finance.
"Every time MSCI came around, I said 'Forget it. We can't invest,'" Mobius said. "Now we can, and I have no objection."
The New York-based index provider will say on June 9 whether China is eligible for inclusion. It rejected the country 11 months ago after a year-long consultation with investors.
China's benchmark Shanghai Composite Index has surged 114 per cent since MSCI's decision last year, spurred by an influx of individual investors and optimism that monetary stimulus will revive economic growth.