In a widely anticipated move, the provider of global equity indexes has announced that it will include selected domestic Chinese shares on its Emerging Markets Index and ACWI Index.
The decision to include China A shares is part of MSCI's 2017 Markets Classification Review, and comes after three consecutive years of rejection by the global indexer.
An announcement by MSCI on its website said, «MSCI plans to add 222 China A Large Cap stocks, representing on a pro forma basis approximately 0.73 per cent of the weight of the MSCI Emerging Markets Index at a 5 percent partial Inclusion Factor.»
A Year to Wait
As the mainland market matures, among investors main concerns in recent years have been excessive trading suspensions and repatriation limits for foreign investors.
«International investors have embraced the positive changes in the accessibility of the China A shares market over the last few years and now all conditions are set for MSCI to proceed with the first step of the inclusion,» said Remy Briand, MSCI Managing Director and Chairman of the MSCI Index Policy Committee.
The changes to the index will take effect from June 2018.
