JPMorgan Chase & Co. plans to reduce the weighting of China and India in its flagship emerging market bond index.

J.P. Morgan Chase will reduce the weight of the largest bond-issuing country in its flagship emerging market index, redirecting investment flows from countries such as China and India to smaller economies. According to a client notification dated last Friday seen by Bloomberg, J.P. Morgan Chase will gradually lower the single issuance cap in the GBI-EM Global Diversified Index from the current 10% to 9% in the first half of 2026, with the implementation process to be completed in several months in stages. This weight reduction will affect several of the largest bond-issuing countries in emerging markets, including Indonesia, Mexico, Malaysia, China, and India. Thailand, Poland, South Africa, and Brazil are the main beneficiaries of this adjustment. J.P. Morgan Chase stated in the notification, "Investors believe that lowering the diversification threshold to 9% is beneficial, as it will bring a more balanced regional exposure, reduce concentration risk, and improve the overall index yield."