Didier Rabattu, Head of Equities at Lombard Odier IM, comments on China’s inclusion in the MSCI index:

“The inclusion of the second largest economy domestic shares to MSCI indices has been considered for a while. There have been considerable challenges to the inclusion given the RMB’s convertibility and the inability of global investors to trade domestic shares previously. The latter issue has been largely resolved with the Shanghai and Shenzhen Connect.

“We note that the inclusion is small and will just be 0.7% of MSCI Global EM index in May 2018. This is more positive for the Chinese domestic market, as global investors are not significant market participants in the USD7 trillion Chinese domestic market.”

Important Information:
This document has been prepared by Lombard Odier Funds (Europe) S.A. and is issued by Lombard Odier Asset Management (Europe) Limited, authorised and regulated by the Financial Conduct Authority (the “FCA”), and entered on the FCA register with registration number 515393.

This material is provided for information purposes only and does not constitute an offer or a recommendation to purchase or sell any security or service. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful. This material does not contain personalized recommendations or advice and is not intended to substitute any professional advice on investment in financial products. Before entering into any transaction, an investor should consider carefully the suitability of a transaction to his/her particular circumstances and, where necessary, obtain independent professional advice in respect of risks, as well as any legal, regulatory, credit, tax, and accounting consequences. Past performance is no guarantee of current or future returns. This material is the property of LOIM and is addressed to its recipient exclusively for their personal use. It may not be reproduced (in whole or in part), transmitted, modified, or used for any other purpose without the prior written permission of LOIM. This material contains the opinions of LOIM, as at the date of issue.