NEW YORK, June 20 (Reuters) - U.S. index provider MSCI Inc said on Tuesday it will add domestic Chinese equities to its global emerging markets benchmark index.
MSCI decided not to add Argentina to the index and will consult on adding Saudi Arabia. Nigeria will remain a frontier market, awaiting further review.
MSCI’s decision to add the “A” shares to its widely tracked Emerging Markets Index could move as much as $400 billion of funds from asset managers, pension funds and insurers to mainland China’s equity markets over the next decade. The company had declined to add the shares for three years leading up to Tuesday’s decision.
The “A” shares are expected to make up only 0.5 percent of the emerging markets index once they are added. About $1.5 trillion globally is held in index funds that track the MSCI Emerging Markets Index. (Reporting by Dion Rabouin; Editing by Dan Grebler)