Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
China said on Saturday it strongly opposes Washington's decision to levy additional tariffs on $550 billion worth of Chinese goods and warned the United States of consequences...Politicsread more
The European Union will respond in kind if the U.S. imposes tariffs on France over digital tax plan, EU chief Donald Tusk told G-7.Technologyread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
The final week of August could be highly volatile as markets fret over the economy and the latest developments in trade wars.Market Insiderread more
Federal Reserve Vice Chair Richard Clarida said Friday that the global economy has deteriorated in the past month.Marketsread more
The latest escalation in the trade war ups the odds the economy will fall into recession and that the Fed will aggressively cut rates.Market Insiderread more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
"We don't need China and, frankly, would be far better off without them," Trump tweeted.Politicsread more
Recent trade friction between the two Asian powerhouses has morphed into a dispute with political implications that go far beyond the region.Asia Politicsread more
"My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?" Trump wrote amid a series of tweets that rattled markets Friday.Politicsread more
Global index provider MSCI's announcement that it will quadruple the weighting of large-cap Chinese shares in its benchmark indexes is likely to drive more money into the still highly regulated mainland market, investors and analysts said.
In a widely expected move, MSCI said Thursday that it will increase the weighting of China A-shares — yuan-denominated stocks traded on the mainland — from 5 percent to 20 percent in three steps to November of this year.
Chinese shares, which slumped sharply in 2018, have been on a tear this year, rising 14 percent in February alone on factors including optimism over progress in ending the U.S.-China trade war and expectations for the expanded MSCI inclusion.
Investors and analysts welcomed the news as a significant step in the broader opening of Chinese markets to international funds. They still remain subject to tight capital controls.
"Overall, the final inclusion plan continues to look as aggressive as its proposal, marking another milestone in China's capital market opening up," Citi China equity strategist Jerry Peng said in a note dated Thursday, adding that the U.S. bank expects "strong foreign inflows to China's onshore market."
Chinese A-shares were included in the MSCI Emerging Markets Index for the first time last year. Investors can access them through an arrangement between the Hong Kong and mainland Chinese markets.
Gao Ting, head of China strategy at UBS Securities, said in a note Friday that the MSCI changes would likely spur $67 billion in inflows to the A-share market this year alone.
Philip Li, senior fund manager at investment firm Value Partners in Hong Kong, said that the increased weighting — and expectations of more to come — are likely to boost investor appetites.
"When we get to 20 percent at the end of this year, would it be 50 percent, 80 percent in one or two years' time?" Li said to CNBC on Friday.
"And I think that's where people are thinking 'Okay, I have to have this exposure,'" he added.
MSCI said in announcing the changes that further increases beyond 20 percent "would require Chinese authorities to address a number of remaining market accessibility questions," which it said include "restrictions on access to hedging and derivatives instruments."
Some said, however, that the increases may have limited impact initially.
"It doesn't affect our view of whether a company is good or bad, nor do we feel any need to adjust our portfolios," Nicholas Yeo, head of China equities at Aberdeen Standard Investments, said in a Friday note.
"We take a long-term view of what has historically been a volatile and momentum-driven retail market," Yeo said.
But the trend in the increasing importance of Chinese shares ultimately can't be ignored, he said.
"As China's representation in global benchmarks grows, having little or no exposure to the market will increasingly become an active decision," he said.
Correction: This article has been updated to reflect that Jerry Peng is a China equity strategist for Citi.