Drew Bernstein, co-chairman, MBP was quoted by CNBC.com regarding the move by MSCI, one of the largest stock index companies in the world, to remove 10 Chinese securities from its indexes effective at the close of businesses on Jan. 5, 2021.
By Evelyn Cheng
“This move sends a signal that the geopolitical factors may overcome investors’ interests in being exposed to China’s growth.
The bill contains a requirement that companies disclose Chinese government official roles. The fundamental driver of this need for information goes back to the basics of the importance of transparency as a public company. If there are limits to corporate transparency, the company is at risk of losing investor trust and confidence.
The increased weighting of the Chinese equities in the indexes, especially MSCI, has been an important catalyst in the increased flow of capital to China to date. The latest announcement was very specific and MBP expects global investors will still have a very strong appetite for participating in the Chinese consumer growth story.
At the onset of the pandemic, everyone was asking if Chinese companies would still go public. Now, there is growing global investor interest despite new rules. The question is not if or even when, but where will Chinese companies choose to go public?”Click here to read full article as PDF >>