Ethan's Economics and Finance Views

 MSCI and FTSE delisted China Oil Company CNOOC today (26/1) and tomorrow (27/1) Daily News Sharing After China Mobile Limited (941.HK) ,  Semiconductor Manufacturing International Corp (981.HK), and C hina Telecom (728.HK), global indices like MSCI and FTSE announced that they would delist CNOOC (883.HK) in its index because of the executive order of the U.S.. Today, MSCI finished its rebalancing in MSCI China All Shares Indexes, more than 100 billion At the same time, FTSE would delist CNOOC (883.HK) tomorrow in its FSTE China A50 Index . After the effect of delisting, the delisting is not affected the stock market, but also affected the bond market. JP Morgan points out that the banning  on China firms could affect $60 billion of bonds. JP Morgan  estimated that around “US$55-60 billion of bonds would be affected if the Treasury acts.” The investment bank also calculated that $1.3 billion would outflows in China Market because institutional investors are forced ...

How the incision of China Government Bonds in FTSE Russell Indices Bring out Capital Inflow of China Recently, FTSE Russell had delisted some China Stocks like SMIC and Hikvision in its China A50 index because of the U.S. sanction measures. After the delisted, at least $10 billion flow out in the stock market. However, FTSE Russell is now planning to include China Government Bonds in its global index. According to Goldman Sachs, at least $10- $15 billion US Dollars flow into the China Government Bonds Market each month, an increase of $5 billion each month. The analyst points out that other global indices like  Bloomberg Barclays Indices and JP Morgen's GBI-EM index are also planning to include more China Government Bonds in its Index. Therefore, from my perspective, a more potential inflow of capital is planning to enter the China Bond Market. As China government bonds provide a higher yield to the investor, foreign investors are looking for more channels to get into China...