Goldman Sachs indicated that following the MSCI index rebalancing in February, Chinese equities are expected to attract approximately $1.4 billion in passive fund inflows.
In a report released on Thursday, Goldman Sachs analyst Alvin So wrote, "On a net basis, the Asia-Pacific region—with China at $1.4 billion, Australia at $270 million, and Singapore at $160 million—is projected to see the largest passive inflows."
At the same time, outflows from South Korea, Indonesia, and Thailand are estimated to reach $200 million, $120 million, and $65 million, respectively.
The MSCI index adjustments are scheduled to take effect after the U.S. market closes on February 27.
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