MSCI embraces China's newly-launched STAR tech stocks
|10/10/2019 | 05:25am|
SHANGHAI (Reuters) - MSCI plans to include stocks listed on China's newly-launched, Nasdaq-style STAR market in its indexes from next month, as international investors seek opportunities in the world's second largest economy.
Beijing is continuing to open up its financial markets despite the ongoing Sino-U.S. trade spat, while major index providers, including MSCI, FTSE Russell and S&P, have begun or are stepping up index inclusion of China A-shares.
Stocks listed on China's STAR market will be included in the MSCI China Indexes and their derived indexes, if they meet eligibility requirements, MSCI said in a statement on Thursday.
The move could potentially improve liquidity in the market and expand foreign investors' access to the country's tech sector, to which Beijing is providing policy support to reduce its foreign dependence.
China launched STAR in July, as Beijing seeks tech self-sufficiency amid the bruising trade war with the United States.
MSCI said the inclusion is separate from adding China A shares to MSCI China and the MSCI Emerging Markets Indexes.
Following MSCI's announcement, 32 of the 33 stocks on the STAR market gained ground on the day.
(Reporting by Luoyan Liu and Andrew Galbraith; Editing by Alexander Smith)