Several Chinese internet companies spiked at the close on news they will be included in China’s MSCI index.
Other stocks seeing a spike on the news were $WUBA $CTRP $NTES $QIHU.
There are other internet stocks included in the addition, but they did not immediately spike higher. YY and SFUN, for example.
Overall 14 US-listed China internet stocks are being added to the index. China loves the internet, even if their government aggressively censors it. Now they can gain tons of exposure to their favorite companies via the MSCI index, which was previously dominated by banks.
Congrats if you were long any of the aformentioned names prior to this announcement, however I think this can put a bid in these names for more than just a spike. Therefore China has effectively stolen the thunder from our USA internet day, Cyber Monday, again.
har har har
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This was announced by MSCI on November 12th.
Actually June 3rd. A move this big is never a surprise…
And at the same time it was announced by Vanguard that they will swap out into A shares spreading out over the next year, they don’t want to do it all at once spiking aforementioned companies.
As soon as the announcement hit the street I bought their ChiCom index ETF.
This is called forward thinking.
iBC needs to get with the program, quit the oil nonsense and the belief that the market will spike 40% this year.
“The Vanguard FTSE Emerging Markets ETF and its traditional mutual fund will begin tracking FTSE’s transitional index in late 2015, according to a spokesman.”
A-shares inclusion means that Vanguard’s emerging-markets ETF will look even more different that its rival iShares MSCI Emerging Markets ETF (EEM). MSCI considers South Korea to be an emerging market, while FTSE does not. On June 9, MSCI is expected to announce whether it will add A-shares to its emerging markets index.
Vanguard’s emerging-markets fund and three other internationally-themed funds also will give greater heft to shares of small companies, the fund company said in a statement on Tuesday. In addition to the emerging markets ETF, the following funds will see more weight given to small caps: The Vanguard Developed Markets Index mutual and exchange-traded funds (VDMIX; VEA); the Vanguard Pacific Stock Index Fund (VPACX; VPL); and the Vanguard European Stock Index Fund (VEURX; VGK).”
Well color me surprised. Today’s end of day spike caught me by surprise o_O