China

China is being so aggressive with investment and economic policy.  After years of giving the world the finger, they are desperate for foreign buyers of their largely state owned zero-substance corporations.  Apparently, this is a pretty good strategy as it forces outside pressures upon asset managers to partake in the gains.  

If China has massive success doing this, and assuming they have good intentions (that's a reach), this is a smart way to de-lever some of their massive debt by issuing equity.  

The question is 'who outside of China ignorant enough to up their China exposure?'  Apparently FTSE.

The benchmark for the Vanguard FTSE Emerging Markets ETF otherwise known as VWO 

has decided to up their china exposure, making it roughly 50% of the index.  

Todd Shriber from @etftrends

“The initial weighting of China A Shares in the FTSE Emerging inclusion indexes will be approximately 5%. This is expected to increase to 32% (at 31-March 2015 market values) when China A Shares are fully available to international investors, and hence resulting in Chinese stocks (including B-Share, H-Share, P Chips and Red Chips) to make up 50% of FTSE Emerging Index,” said FTSE Russell in a statement."


More Reads

6 Charts showing the massive divergence between China's market and the economy. 

Soros on World War III 


MSCI via @FT



Thanks for reading!