MSCI Considers Downgrading Indonesia From Emerging Market Status
· Business · Bloomberg, CNBC
MSCI Inc. is consulting on a proposal to reclassify Indonesia from an emerging market to a standalone market. The index provider cited concerns regarding market integrity and governance as the primary reasons for the potential downgrade. This move threatens to trigger a flight of foreign capital from Indonesian stocks. MSCI will proceed with the change unless it observes material improvements in the country's market functioning.
Why it matters
A downgrade would likely lead to significant capital outflows from Indonesia, impacting the country's stock market and investor confidence.
Read the original report — Bloomberg
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