JP Morgan is set to reduce the weighting of both India and China in its widely tracked Emerging Markets (EM) Bond Index, according to Zee Business report. This move could shift foreign investor flows towards smaller economies. The changes will take effect from the first half of 2026, the global financial services major said.
According to JP Morgan, the maximum limit for any large issuer in the EM index will be cut from 10 per cent to 9 per cent. This reduction is aimed at capping the dominance of bigger markets such as India and China and ensuring greater representation for smaller countries in the benchmark.
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