MSCI China Index Rises 14 Percent, Well Above MSCI World, in Q1

(Yicai Global）March 29 — The MSCI China Index has risen nearly 14 percent since the beginning of this year, surpassing the US and Japan’s index performance, according to the latest data from MSCI. The rise in the MSCI China Index is also much higher than the six percent upsurge in the MSCI World, a stock market index of 1,652 world stocks.

The MSCI China Index tracks the performance of 150 Chinese stocks listed in Hong Kong and the US, as well as B shares.

This represents the strongest Q1 performance of Chinese stocks since 2006, reversing the previous decline. The MSCI China Index fell 8 percent in the fourth quarter of 2016, due to fluctuations in the yuan exchange rate.

Since the beginning of this year, there have been a number of investment banks adopting bullish approach toward Chinese stocks. In mid-March, Goldman Sachs issued a report to raise China’s stocks to overweight and its expectation for the next 12 months’ MSCI China Index from 68 points to 73 points.

The largest global asset management investment company BlackRock Group said at the beginning of the year that investors should not be worried about the debt burden, sustained capital outflows, and possible trade wars between China and the United States.

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