[00:00] China's A-share inclusion into the MSCI is a significant step for China and its goal of opening up further the nation's financial sector. Jingyi Pan is market strategist at IG Asia in Singapore.
[00:14] What the authorities have done is really take things forward with the Stock Connect and also I think institutional investors have shown their support with the removal of the pre-approval requirement.
[00:27] So I think in that sense, it's really quite a recognition of this debt. The recognition now allows the world's second-largest market to become accessible to the world's investors,
[00:39] all of its $6.8 trillion onshore market accounting for 9% of global stock value. Reason why Ricky Loraez of Strategic Equities wasn't surprised as some foreign money went out of the Philippines days before.
[00:53] Could well be that China is going to be one of the destinations, considering that China is the slowdown in the GDP growth rate in China. It already largely been discounted and it is still growing and it is a regional powerhouse So you can argue with size that is still growing albeit at a lower rate It a new headwind for Philippine markets says AB Capital investment manager Migs Lopez
[01:21] He tells ANC all shares, including those listed in the Philippines, will highly likely get underweighted. And that's coming at a time foreign funds have been bulking up on the Philippines as
[01:33] the infrastructure build gets going. And amid progress in the tax reform plans under the Duterte administration. It took four tries before China got the MSCI's nod. China has since moved
[01:46] to connect its markets in Shanghai and Shenzhen with that of Hong Kong's, part of the country's reforms towards global integration. While reaction had been initially muted among Chinese shares, some market watchers in Manila warn of fiercer competition ahead for foreign money.