Economy· Macro· Money Mkt

MSCI's increase in China's A-shares weightage could attract USD 80 bln overseas funding

minutes 2018/11/08 02:36:10
China's News, China's Financial News, MSCI

Nov 08, 2018 (China Knowledge) - After A-shares were added to the MSCI Index and the FTSE Index, there has been a new development in that regard. According to the information from Securities Times, yesterday, MSCI is in talks about further improvements in the weighting of China's A-shares in its index. However, no decision on any specific plan has been made yet. MSCI plans to announce its decision before Feb 28, 2019.

MSCI thinks that, A-shares will increase to 2.8% of the MSCI Emerging Market Index proforma weight by August 2019, as China's A-shares large-cap stocks inclusion factor rises to 20%. On the other hand, if MSCI includes China's mid-cap stocks in the future, it will further increase the A-shares weightage to the MSCI Emerging Market Index.

Reuters had reported earlier that MSCI was expected to increase the weightage of China's A-shares in its Global Benchmark Index from 5% to 20% in 2019, which could attract more than USD 80 billion in new foreign investment to China.



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