How Investors Should Respond to Evergrande and China’s Regulatory Crackdown

Fanglue Zhou analyzes how China’s recent challenges impact institutional investors’ emerging market allocations.

Three Potential Paths to a China A-Shares Allocation

We discuss three paths to implementing a China A-shares allocation.

Assessing the Equity Market Impact of the Coronavirus for Institutional Investors

Since the first illness was reported in China in December 2019, the coronavirus has affected over 80,000 people globally and caused nearly 3,000 deaths, with reports almost each day of the virus spreading to additional areas. The majority of the pain so far has been felt in China and by companies with operations there. Many […]

Emerging Markets and SOEs

One of the biggest differences between developed and emerging market equities involves the ownership structures of companies in the two areas. Most developed market companies, measured by index weight, are widely held with a dispersed investor base, according to MSCI. In comparison, the largest share of emerging market companies are state-owned enterprises (SOEs), in which […]

Analyzing the Impact of Saudi Exposure in Key Indices

Two major index providers plan to add Saudi Arabian stocks to their indices this year, and Vanguard will add exposure to Saudi Arabia to some of its mutual funds. There will be relatively little immediate impact, but in this post we highlight some of the characteristics of the Saudi market to help institutional investors better […]

Perspective on Turkey

Troubles in Turkey’s capital markets—a depreciating lira, plunging stock market, skyrocketing bond yields—are raising concerns about contagion. The country’s problems are unique to its circumstances and largely a result of internal policy, but investor concerns are starting to spread across all emerging markets, whether justified or not. EM investing has always come with heightened volatility, […]

Under the Hood of the MSCI EM Index

Remember the BRIC countries? The acronym was coined in 2001 by Goldman Sachs economist Jim O’Neill for the economies of Brazil, Russia, India, and China to convey that their relative economic growth would continue to exceed that of the so-called Group of 7 (Britain, Canada, France, Germany, Italy, Japan, and the United States) and thus […]