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Firms track free float

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SCMP Reporter

Two of the world's leading benchmark index compilers are closely monitoring the level of free float in Hong Kong-listed shares following the Government's $118.13 billion market intervention.

The Government's vow to keep its holdings for a prolonged period has sparked the attention of the International Finance Corp (IFC) and Morgan Stanley Capital International.

The IFC, the private-sector arm of the World Bank, compiles emerging market investable indices based on how much stock is available to foreign investors.

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It said it had become concerned because it includes Hong Kong-listed H shares and red chips in its IFCI China Index.

It said the shares of four firms falling into these categories had been bought by the Government, potentially affecting their weightings.

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