In recent years, China's rapid economic development has attracted global attention. As the world's second-largest economy, China's A** market is increasingly attracting international investors' interest. However, just recently, Morgan Stanley sparked some controversy when it launched an ETF that excludes emerging markets in China. Some see this as discrimination against the a** field; But on the other hand, we should also calmly think about the reasons behind it.
First of all, we need to realize that an ETF is a pro-rata purchase of multi** investment vehicles designed to provide a variety of investment options. However, each ETF has its own investment strategy and goals. Therefore, the fact that Morgan Stanley launched an ETF that does not include emerging markets in China does not necessarily mean that it discriminates against the A** market. There may be other reasons that drive them to make this decision, such as capital allocation, risk management, or the market**.
On the other hand, we can't ignore the performance of the A** field over the past few years. In 2019, A** achieved a return of more than 20%, which is higher than many other emerging markets. However, the A** market has also experienced some drastic volatility in history, and investors have certain concerns about this. Morgan Stanley may consider the exclusion of A** from emerging market ETFs as a risk management strategy. This is not a discrimination against the a** market, but a reasonable response to market risks.
In addition, there are a number of market factors involved in the launch of this ETF. The cost of an ETF includes considerations such as market liquidity, transaction costs, and regulation. Perhaps Morgan Stanley believes that the current A** market is not mature enough in some aspects to meet their ETF product requirements.
However, we cannot deny the emotional reaction that people have to such decisions. Especially as Chinese investors, we have special emotions and expectations for the A** market. We hope to see more capital inflows to increase the visibility and influence of A** on a global scale. So when Morgan Stanley launched an ETF that excludes emerging markets in China, our emotional reaction was understandable.
We should remain calm and objective about this emotional response. As a developing market, there is still a lot of room for improvement. We need more investors to further improve the size and liquidity of the market. Rather than blaming Morgan Stanley, it is better to take a more proactive approach to investor education and market reform. It is only through joint efforts that we can truly make the A** market a market that is recognized and respected by global investors.
In general, Morgan Stanley's launch of an ETF that does not include emerging markets in China does not necessarily mean discrimination against the A** market. There may be other legitimate reasons behind this, such as capital allocation, risk management, or the market**. Even so, we should understand and respect people's emotional reactions to such decisions. We need to remain calm and objective, push for more reforms and education, and make the A** field more mature and attractive. Only in this way will we be able to attract more global investors and further promote the development of China's economy.