Chinese stocks could attract more than $400 billion in inflows when shares are included in MSCI (MSCI) - Get MSCI Inc. Class A Report indexes, BlackRock (BLK) - Get BlackRock, Inc. Report said, according to CNBC.
BlackRock Managing Director and Head of China Equities Helen Zhu made that assertion after market watchers hardly reacted to MSCI's decision to add 222 China A shares into its emerging markets index.
The inclusion factor is only 5% at the moment, but Zhu said in the longer term China's inevitable full inclusion could mean the country's shares will constitute over 40% of MSCI emerging market indexes.
BlackRock's midyear investment outlook is optimistic on both Chinese equities and credit. Zhu said the country's recent regulatory crackdowns are part of the nature of emerging markets and nothing that should deter investors.
What's Hot On TheStreet
The stock market may be overvalued: Now may be the time to pay extra attention to red-hot tech stocks such as Apple (AAPL) - Get Apple Inc. (AAPL) Report and Facebook (FB) - Get Facebook, Inc. Class A Report . As TheStreet first reported Tuesday afternoon, asset valuations are somewhat "rich" by standard metrics, Federal Reserve Chair Janet Yellen said in London during a conversation about economic issues with British Academy President Lord Nicholas Stern. Yellen's comments on equity valuation and bank strength closely mirrored Fed Vice Chairman Stanley Fischer's from an IMF event held earlier in the day.
The iPhone has changed how you make money: TheStreet's Scott Gamm is out with a piece that will really get you thinking. Apple's iPhone will turn 10 years old on Thursday. The device not only turned Apple into one of the world's most valuable companies, helping to boost its stock price more than 700%, it also changed the way we invest and trade stocks Gamm points out.
In fact, the original iPhone -- and the current versions -- have an internal stocks app, allowing users to check the broader market indexes and individual stock prices. Having this in your pocket was a big deal 10 years ago.
"I think it's actually made the life for a typical investor much easier," Angelo Zino, an analyst with CFRA Research, told TheStreet. "I think they've been able to tap news flows much quicker."
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