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This is a big deal that China didn't get included. Malaysia was very worried about what this inclusion would mean for their weight & push reforms (usually if a country is included then others' weight would decline like MSCI where China's higher share is at the expense of Korea)
Malaysia is on the watchlist for EJECTION of the index & FTSE says Malaysia needs to do more to widen market access. BNM announced additional measures to give more flexibility to foreign investors to trade in the ringgit, & for resident businesses to manage hedging of FX.
Malaysia has the most foreign bond participation (no original sin as they invest in ringgit). China exclusion is key in that China needs capital inflows at the moment & reflects investors' demand for criteria to be met for inclusion.
This takes us to India - reforms needed too!
This takes us to India - reforms needed too!
You can download the press release here & key pts are:
In WGBI, China is not included & Israel is
China & Malaysia on watchlist
Vietnam is on watchlist to be upgraded to secondary emerging from frontier 👈🏻
ftserussell.com/press/ftse-rus…
In WGBI, China is not included & Israel is
China & Malaysia on watchlist
Vietnam is on watchlist to be upgraded to secondary emerging from frontier 👈🏻
ftserussell.com/press/ftse-rus…
Facts about WGBI - tracks a lot of $ & market value is USD23.7trn:
39% is US gov bonds
21.5% is Asia Pacific
0.6% Latin America 😮
Malaysia staying on means decent passive flow (0.39% of total or ~92bn USD). China not getting on means it's missing passive flows into govies.
39% is US gov bonds
21.5% is Asia Pacific
0.6% Latin America 😮
Malaysia staying on means decent passive flow (0.39% of total or ~92bn USD). China not getting on means it's missing passive flows into govies.
