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Chin Ping Chia

Chin Ping Chia
Head of Research for Asia Pacific

About the Contributor

Chin Ping Chia is Head of Research for Asia Pacific. He manages MSCI’s applied research effort and works closely with the world’s leading investors on a wide range of investment topics. Chin Ping is also a resident expert on China and sits on the Advisory Committee of the Quantitative Finance Program for the Chinese University of Hong Kong. Chin Ping received a degree in Economics from the National University of Singapore and is a CFA charterholder.

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Contributions by Chin Ping Chia

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  1. BLOG

    China A shares: The journey continues 

    Oct 10, 2018 Chin Ping Chia

    Emerging Markets , Global Investing

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    As China continues to open its capital markets to global investors and accessibility standards have improved, MSCI recently launched a consultation to explore increasing the weight of A shares in the MSCI Emerging Markets Index. Ultimately, we seek to reflect the full investable opportunity set — all of China accessible to global investors — in the benchmark, as we do in all MSCI Global Investable Market Indexes.

  2. MSCI recently launched a consultation on a further weight increase of China A shares, following the successful implementation of the 5% initial inclusion between May and August 2018. The proposal, if implemented, could boost China A shares’ weight in the MSCI Emerging Markets Index from .71% to 2.8% by August 2019 and to 3.4% by May 2020. The three core proposals are: increase the inclusion factor of the 235 China A Large Cap shares from 5% to 20%; bring 168 China A mid-cap shares into the index at a 20% inclusion factor; admit the ChiNext board in Shenzhen to the list of eligible stock exchange segments.

  3. BLOG

    The World Comes to China 

    May 23, 2018 Chin Ping Chia

    Global Investing

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    Emerging markets may never be the same. On May 31, MSCI will include about 233 China large-cap A shares to the MSCI Emerging Markets Index. Inclusion at a 5% initial weight could lead to approximately USD 22 billion of capital inflows into these stocks. What might investors need to consider as we approach this milestone?

  4. MSCI’s recent announcement that it will add 222 China A shares to its key benchmarks raises practical questions for global and emerging market investors: How does it affect their investment policy? How can they implement these exposures (whether or not they already have China A shares in their portfolios)? While inclusion of China A shares is a year away, institutional investors may want to start planning for how this change may affect their portfolios.  Longer term, if China continues to liberalize the A shares market and MSCI were to fully include them, China’s weight in the MSCI Emerging Markets Index could rise to 40.8% from 28% currently.

  5. BLOG

    What might U.S. trade barriers mean for global equities? 

    Dec 2, 2016 Chin Ping Chia

    Economic Exposure

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    Emerging market equities underperformed U.S. stocks by 7.2 percentage points (as of Nov. 30) following Donald Trump’s election as president, based partly on the expectation that the president-elect is likely to pursue a series of protectionist policies that could hurt many export-dependent emerging nations. Stocks in developed economies (ex-U.S.) also underperformed those in the U.S., albeit by a smaller margin (3.8 percentage points).

  6. BLOG

    A look at MSCI’s Emerging Markets Index and China A-shares 

    Oct 24, 2016 Chin Ping Chia

    Global Investing

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    During our consultations on whether to add China A-shares to MSCI’s Emerging Markets Index, some institutional investors asked what full inclusion might mean for the index and the asset class. Given China’s already-significant weight in the index, would the addition of shares of local Chinese companies, even if years away, reduce diversification of the index and render the asset class irrelevant?

  7. BLOG

    バリュエーションは将来のファクターのリターンを説明するのか?(しないのか?) 

    Oct 10, 2016 Chin Ping Chia

    Factors

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    低ボラティリティ・ファクターの相対的バリュエーションの上昇、そして同時に起きているバリュー・ファクターの低下により、機関投資家は自らのエクスポージャーをシステマティックな戦略にタイミングを取って変更することに意味があるかどうか悩んでいる。要するに、投資家がバリューに資金を振り向けけたい思うほど、バリューは(市場対比で)割安になっているのか?そして、相対的に割高な低ボラティリティから、投資家は資金を引き上げるべきか?ということである。

  8. BLOG

    What valuations tell us (and don’t tell us) about future factor returns 

    Sep 14, 2016 Chin Ping Chia

    Factors

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    A rise in relative valuation of the low volatility factor and a concurrent fall-off in the value factor have led some institutional investors to wonder anew whether it makes sense to time their exposures to systematic strategies. In short, has value become so cheap (relative to the market) that investors may want to pivot toward it? And does a relatively rich valuation for minimum volatility tell investors it’s time to back off?

  9. BLOG

    The shrinking cost of currency hedging 

    Jun 21, 2016 Chin Ping Chia

    Global Investing

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    It may be time for institutional investors to rethink whether to hedge their exposures to foreign currencies. Though hedging can help investors avoid losing money amid swings in the foreign-exchange market, the strategy can be an expensive one for investors based in countries with structurally low interest rates.

  10. BLOG

    Seeking defensive yield in emerging markets and Asia 

    Mar 22, 2016 Chin Ping Chia

    Factor Investing

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    As we highlighted in a recent post, minimum volatility strategies have outperformed this year to date amid unrest in financial markets.

  11. PAPER

    Research Insight - Harvesting Equity Yield: Understanding Factor Investing 

    Dec 15, 2015 Chin Ping Chia , Katiyar Saurabh , Wei Zhen

    Factor and Risk Modeling , Investing (Investment Management) , Portfolio Construction and Optimization

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    Ever since central banks slashed interest rates in response to the Global Financial Crisis, many institutional and retail investors turned to high dividend-paying equities to meet their needs for income. However, a naïve high-yielding equity strategy can expose itself to various “yield traps,” such as those stemming from temporarily high earnings, high payouts or low stock price. We find that the yield factor has tended to perform well during a structurally low and rising interest rate regime, which could become a prevailing macroeconomic regime over the coming years as the Federal Reserve begins its rate-hiking cycle.

  12. BLOG

    FLIGHT TO QUALITY 

    Sep 21, 2015 Chin Ping Chia

    Factor Investing

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    The quality factor has demonstrated long-term outperformance against the market, but it has not received the same attention as the value, size or momentum factors.

  13. The quality factor has worked best in a "risk-off" market environment. Yet quality is not as well understood as other factors, despite being deeply embedded in Benjamin Graham’s value investing philosophy. In this Research Insight, we argue that the quality of a company can generally be evaluated along five key dimensions: Profitability, Earnings Quality, Financial Leverage, Asset Growth and Corporate Governance. Investors can replicate a variety of quality indexes, depending on their objectives and their capacity constraints. When a flight to quality occurs, this factor historically has served as an important defensive tool in portfolio construction.

  14. BLOG

    MULTI-FACTOR INDEXES MADE SIMPLE 

    Jun 24, 2015 Chin Ping Chia

    Factor Investing

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    Institutional investors are increasingly gravitating towards multi-factor allocations as the preferred approach to factor investing. But how should factor indexes be combined?

  15. PAPER

    Research Spotlight - The MSCI Diversified Multi-Factor Indexes 

    May 27, 2015 Padmakar Kulkarni , Dimitris Melas , Stuart Doole , Chin Ping Chia

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    Multi-factor indexes are important tools for institutional investors seeking diversified exposure to factors that have historically generated premia over long horizons. In this Research Spotlight, we examine the new MSCI Diversified Multi-Factor (DMF) Index family, which selects stocks with exposures to the value, momentum, quality and low size factors, while keeping risk at the level of the market.

  16. PAPER

    Research Insight - MSCI DIVERSIFIED MULTIPLE-FACTOR INDEXES 

    May 7, 2015 Padmakar Kulkarni , Stuart Doole , Chin Ping Chia , Dimitris Melas

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    Maximizing Factor Exposure While Controlling Volatility

    May 2015

    Multi-factor indexes are important tools for investors seeking diversified exposure to factors that have historically generated premia over long horizons.  In this Research Insight, we examine the new MSCI Diversified Multiple-Factor (DMF) Index family. These indexes combine four well-researched factors — value, momentum, size and quality — with a control mechanism designed to keep volatility close to the level of the market. We find that the DMF approach historically has allowed for efficient index construction by capturing the intended factor exposures and handling investor constraints. By optimizing exposures, these multi-factor indexes have produced high, persistent and controllable factor exposures from a focused selection of stocks.

  17. BLOG

    CHINA A-SHARES: TOO BIG TO IGNORE 

    Feb 11, 2015 Chin Ping Chia

    Global Investing

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    China A-Shares are too big to be ignored but remain difficult for many institutional investors to access. How can global investors avoid a stock market that is now the world’s third-largest, with a total market value of nearly USD 4 trillion, putting it just behind the United States and Japan?

  18. PAPER

    Research Insight - Multi-Factor Indexes Made Simple - November 2014 

    Nov 19, 2014 Chin Ping Chia , Mehdi Alighanbari

    Factor and Risk Modeling , Investing (Investment Management) , Portfolio Construction and Optimization

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    Multi-factor index fund allocations are increasingly becoming the preferred approach to factor investing. In this paper, we examine the return/risk characteristics of nine static and dynamic weighting strategies over a 36-year period. The results highlight that a simple strategy that equal weights multiple factor indexes has historically proved more effective than many of the more complex approaches - pointing to its potential as a way to combine factors, especially in the absence of active investment views and skills. However, a dynamic factor weighting strategy based on fundamental signals also has merit if the investor believes she has the insight or skills required.

    Read the Spotlight

  19. PAPER

    "A" Opening to the Great Wall 

    Feb 6, 2014 Chin Ping Chia , Billy Ho

    Investing (Investment Management)

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    This paper reviews the implications for global institutional investors of the recent developments in the China A-share market, which has expanded tremendously over the last two decades. Today, the Shanghai and Shenzhen stock exchanges have a total market capitalization of about USD 3.9 trillion dollars of which foreign participation accounts for just over 1% percent. Since the end of 2011, Chinese authorities have embarked on a series of efforts to accelerate the opening of the domestic capital market. Notable measures included a significant increase in the total QFII quota and a rapid expansion in the RQFII scheme. As access barriers fall away, China A-shares could soon become a viable investment opportunity set for global investors.

  20. BLOG

    The Next Generation of Global Investors 

    Jan 21, 2014 Chin Ping Chia

    Global Investing

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    We’ve observed that many institutional investors have abandoned their historical domestic-equity bias and now view global equities as a single, broad asset class. In high-growth economies, however, particularly in Asia, Central and Eastern Europe, Africa and Latin America, many investors remain focused primarily on domestic stocks.

  21. PAPER

    The Next Generation of Global Investors - Spanish 

    Aug 16, 2013 Chin Ping Chia , Billy Ho

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    Esta investigación sienta las bases y los beneficios de una asignación de capital accionario global, examinando el tema desde la perspectiva de inversionistas provenientes de países de alto crecimiento. También demuestra que un marco de asignación de capital accionario global puede brindar a los inversionistas una completa diversidad de oportunidades de inversión en la esfera mundial y ayudar a incrementar la rentabilidad en función al riesgo…

  22. PAPER

    The Next Generation of Global Investors 

    Jul 23, 2013 Chin Ping Chia , Billy Ho

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    The paper lays out the foundations and benefits of global investing, examining the topic from the perspective of investors in high growth countries. It demonstrates that a global equity framework can provide diversification and higher long-term risk-adjusted returns for investors from high growth countries who often hold home-biased equity portfolios that can have high concentration risk.

  23. PAPER

    Built to Last - Two Decades of Wisdom on Emerging Markets Allocations 

    Oct 18, 2012 Chin Ping Chia , Juliana Bambaci , Billy Ho

    Investing (Investment Management) , Performance Analysis , Portfolio Construction and Optimization

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    The last decade has seen a prolific increase in approaches to emerging markets investing. Broad emerging markets exposure is increasingly viewed as an integral part of a global equity allocation alongside developed markets. The acronym style of emerging markets investing has also come forth (including BRIC, N-11, CIVETS, MIST, etc.), seeking more targeted exposure within emerging markets. We explore this wide array of emerging markets mandate configurations and implementation options.

  24. PAPER

    Integrating ESG into the Investment Process 

    Aug 17, 2011 Chin Ping Chia , Roger Urwin

    Responsible Investing

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    In recent years, many institutional investors have been increasingly recognizing that the long-term sustainability of their investments matters. Environmental, Social and Governance (ESG) factors are becoming important considerations for investors to focus on given their influence on a portfolio's risk and return profile. Some asset owners are starting to embrace the concept of "Universal Ownership", where they see the long-term exposure to the whole economy through their portfolio as requiring specific investment actions. Mitigating risks due to exposure to ESG factors and dealing with externalities in order to produce higher sustainable long-term returns has become an integrated part of the portfolio management process for many investors/asset owners.
    The aim of this paper is to provide a framework for integrating ESG considerations into the investment process of mainstream institutional investors. In particular, it introduces a portfolio analytical concept that aims to measure how well ESG factors are integrated across the entire portfolio and that can be used to set quantifiable objectives for improvement.

  25. PAPER

    Insights on Japan's Bond Market 

    Feb 2, 2010 Chin Ping Chia , David Owyong , Hidenori Shimizu

    Performance Analysis , Risk Management

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    Japan’s domestic bonds constitute one of the major asset classes for Japanese pension plan sponsors. In this Research Bulletin, we use the Barra Integrated Model (BIM) to examine the evolution of this market and better understand the relationship between bonds and equities in Japan.

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