By John Lin, Stuart Rae
As MSCI considers boosting the allocation to Chinese onshore stocks in its emerging-market indices, global investors are pumping money into the market. But watch out for crowds. Flows into China are concentrated in a small group of large-cap stocks.
On February 28, index provider MSCI will decide whether to begin increasing the weight of onshore Chinese A-shares in its emerging-market and global indices in May after first opening the door last May. If approved, MSCI will quadruple the value of large-cap China A-shares in its benchmarks, forcing index funds to