MSCI Shrugs Off China «Investability» Concerns
Global index giant MSCI’s chairman shrugged off concerns about the «investability» of Chinese stocks amid a regulatory crackdown, adding that such government action is common amongst emerging markets.
MSCI chairman and chief executive Henry Fernandez said regulatory compliance has weighed on Chinese markets «every three, four, five years» but a rebound has traditionally followed.
«[O]bviously the markets have sold off at the time,» Fernandez said in a «Bloomberg» interview in response to concerns about the «investability» of Chinese stocks. «But very quickly afterwards, the markets have recovered and gone through to new heights.»
Common in Every EM
According to Fernandez, every emerging market in the world has faced similar criticism, adding that India and Mexico were at times also deemed uninvestable due to actions by their governments.
«We have to look at this process that the Chinese regulators are going through in the prism of the last 10 years and also across other markets in the world,» he said. «Countries go through periods like this.»
