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MSCI moves to bring China's American-listed stocks into global indices

Chinese stocks are about to become a bigger part of the global investor's portfolio. And there is more coming.

China is a huge part of the global economy, but a good part of China's stock market is not represented on any of the global indices. Starting Dec. 1, MSCI, one of the leading index providers in the world, will include all 14 U.S.-listed China stocks in its indices, including Alibaba and Baidu.

Believe it or not, these big Chinese companies like Alibaba, the biggest e-commerce retailer by far, and competitor Baidu, have not been represented in global indices.

That's going to change.

MSCI will include 14 companies: Alibaba, Baidu, Ctrip, JD.com, Netease, New Oriental Education, Qihoo, Qunar Cayman Islands, Soufun Holdings, Tal Education, Vipshop Holdings, Youku Tudou, YY, and 58.com.

Why is this important? MSCI's indices are used all over the world, in index funds, ETFs, even by active managers, so when there is a big change in the composition of the indices, it gets attention because a lot of money is going to be moved around.

How much money? There's over $9 trillion indexed to MSCI's indexes, including the All-Country World Index which is designed to capture the performance of a vast swath of stocks in almost 50 countries, and smaller slices of the world's stock markets like Emerging Markets, and Europe, Africa and Far...


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