Source:
https://scmp.com/business/money/stock-talk/article/2146277/canadian-pension-funds-call-more-short-selling-avenues
Money/ Stock Talk

Canadian pension funds call for more short-selling avenues for China A shares

Inclusion of China A shares into MSCI indices will lead to more fund inflow but China still remains a long-only market

Fund managers expect greater flow of funds into China’s A shares as a result of their inclusion in MSCI’s indices. Photo: TNS

Managers at leading national pension funds say the inclusion of yuan-denominated A shares into MSCI indices has made China an attractive long-only market, but they are hoping for more avenues to short-sell equities so that they can also implement other hedge-fund like alternative strategies.

Amy Flikerski, senior portfolio manager for the C$350 billion CPP Investment Board (CPPIB), which invests pension funds for 20 million Canadians, said the addition of Chinese domestic shares to the MSCI Emerging Markets Index, MSCI China Index and MSCI All Country World Index, is significant and that this could also lead to more capital market opening in China.