MSCI has launched 12 new indexes in preparation for the next step in the China A inclusion process.
On 20 June 2017, MSCI announced it would partially include the large cap China A shares in the MSCI Emerging Markets Index and the MSCI ACWI Index. With A shares to be partially included effective 1 June 2018, the MSCI China Indexes will cover all share types of Chinese companies listed globally.
“We are proud to announce the launch of this new suite of China indexes. With the increased liberalisation and internationalisation of the China market, investors have expressed a clear need for more insight and tools to make better informed investment decisions. MSCI is committed to providing a full suite of innovative products, including Indexes, Risk Models and ESG ratings to assist in this area,” says Theodore Niggli, head of APAC index products, MSCI.
The new MSCI China A Indexes reflect the China A shares opportunity set, and follow the MSCI Global Investable Markets Indexes Methodology and the Stock Connect eligibility constraints for large cap and mid cap companies. These indexes expand the range of the MSCI China All Shares Indexes that represent the opportunity set of the integrated MCSI China equity universe where China A shares are fully represented. The new indexes also broaden the range of the MSCI China A International Indexes which represent the A share component of the MSCI China All Shares index, excluding the Stock Connect eligibility constraints.
