Emerging Markets

: Hong Kong-listed Chinese companies, along with those in South Korea and Taiwan, make up more than half of the 23-country benchmark, which has about $1.7 trillion of global funds tracking it.MSCI will decide on June 9 whether to add China locally traded shares in the index-provider equity benchmarks, a historic shift that has the potential to move billions of dollars into mainland stocks, according to Bloomberg. While an inclusion would better reflect the landscape of emerging markets, the risk for investors who follow the developing-nation gauge is that their holdings become too concentrated in one region. The outperformance of the region stocks over the past five years against markets such as Brazil and Russia has helped increase their weighting in the MSCI Emerging Market Index to 69 percent, the highest since at least 1995. You’ve got an increasing lack of diversification, Allan Conway, head of emerging-market equities at Schroder Investment Management Ltd., said by phone from London. That gives investors some diversification and good risk control. One of the benefits of emerging markets is that you’ve got a large number of countries. (news.financializer.com). As reported in the news.