RBC BlueBay AM's Laurence Bensafi: EM index recomposition calls for investors' change of perception

'Progressive maturation' of asset classes

For several years, China dominated the MSCI Emerging Market index, reaching a historical high of 44% in 2020 among the other 23 countries in the index.

Following four decades of rapid economic development, in 2020 China started to shift its economic focus onto quality over pace of growth through a productivity-focused, domestic demand-driven growth model. William Blair's Todd McClone: Divergent paths between China and India While this is a positive and necessary transition for China to achieve its next development phase, ineffective policy making has been a key contributor to the equity market weakness and diminished investor confidence in the country in recent years. In particular, the pace and severity of the government's regula...