Index provider MSCI has decided to include China's A-shares within its Emerging Markets and ACWI indices from June 2018, having received positive feedback from institutional investors it consulted.
The provider said it intends to add 222 China A large-cap stocks to the EM index, representing on a pro forma basis approximately 0.73% of the index's weight at a 5% partial inclusion factor. This will follow a two-step inclusion process to account for the existing daily trading limits on the Shanghai-Hong Kong Stock Connect. The first step would coincide with MSCI's May 2018 semi-annual index review, followed by the second step taking place as part of the August 2018 quarterly review. MSCI will also start to calculate a number of its provisional indices as part of the ACWI index s...
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