As a result of the changes, investors in index mutual funds and exchange-traded funds will soon have even more of their money invested in China. The country is already the largest slice of both FTSE Russell’s and MSCI’s emerging-markets indexes, accounting for more than 30% of the portfolios. The exposure is being ramped up even as the U.S. and China engage in a tit-for-tat trade battle that has unsettled stock markets in both countries. The expansion of index investing marks a new phase in China’s decades long effort to open up its markets to more foreign investment. China earned a spot in the benchmarks after regulators made progress at allaying concerns about market access and ease of trading.

https://www.wsj.com/articles/indexes-to-unleash-flood-of-money-into-chinese-stocks-11558006200