New China indices could shake up fund managers

MSCI''s new China indices may change the way investors pick funds.

Two Greater China indices launched by MSCI this month may leave lethargic fund managers quaking in their Guccis. The two new indices, Zhong Hua and Golden Dragon, are both calculated with dividends reinvested. That means the true performance of their fund managers can be judged.

For example, the average yield from dividends reinvested of all the stocks in Hong Kong's Hang Seng Index is 2.8%. As the Hang Seng doesn't take dividend reinvestment into account, investors could easily...

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