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Billions set to flow into Chinese stocks as MSCI lifts weighting

Market reforms open door to greater weighting, but analysts caution on risks

In a sign of China's greater integration into global markets, domestically traded stocks will account for a greater share of MSCI's Emerging Market index.   © Reuters

HONG KONG -- MSCI is boosting the weight of Chinese stocks in its closely tracked Emerging Markets Index, a move that is expected to draw tens of billions of dollars into the country's stock markets and further the drive for financial reforms.

In a sign of China's greater integration into global markets, the U.S. provider of market indexes said on Friday that China's domestically traded stocks would account for 3.3% of its leading Emerging Markets Index by November, against 0.78% currently. Both large- and mid-cap stocks will be included.

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