Chinese firms rule emerging-market funds

In 2008 Chinese companies comprised 9% of the key benchmark for emerging-market funds. Today, it's 27%.

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In 2008 Chinese companies comprised 9% of the key benchmark for emerging-market funds, the MSCI Emerging Markets index, says Nir Kaissar on Bloomberg Gadfly. Today, its companies make up 27% of the index. And no wonder, when the International Monetary Fund expects China's economy to surpass America's in a decade. Nonetheless, China doesn't set the tone for other markets. There is little correlation between Chinese stocks' performance and those of other developing-country indices; the same goes for links between China and developed markets. So any jitters over creeping authoritarianism shouldn't hamper other major equity indices. "What happens in China is likely to stay in China."

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