MSCI’s Taiwan weighting cut to lead to fund outflows: FSC

Focus Taiwan
Date: 02/14/2020
By: Liu Pei-chi, Jeffrey Wu and Frances Huang

Taipei, Feb. 14 (CNA) Global index provider MSCI Inc.'s cut of Taiwan's weighting in two of its major indexes will only have a minimal impact on fund flows in Taiwan's stock markets, according to the Financial Supervisory Commission (FSC).

MSCI's weighting reduction will result in foreign institutional investors moving about US$287 million or NT$8.6 billion out of the country, only 0.05 percent of those investors' holdings in Taiwan's markets, the FSC's Securities and Futures Bureau estimated.

The assessment came after MSCI said Thursday Taipei time that it has cut Taiwan's weighting in the MSCI Emerging Markets Index, which is closely watched by foreign institutional investors, by 0.07 percentage points to 11.66 percent after a quarterly index review.

MSCI also lowered Taiwan's weighting in the MSCI All-Country Asia ex-Japan Index by 0.08 percentage points to 13.68 percent, while Taiwan's weighting in the MSCI All-Country World Index was left unchanged at 1.42 percent.    [FULL  STORY]

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