China A Shares weight increases to 15% in MSCI Indexes

By admin
In August 30, 2019
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MSCI announced today that they have increased the inclusion factor of all China A Large Cap shares from 10% to 15% in the MSCI Indexes notably MSCI Emerging Markets Index and MSCI ACWI Index, coinciding with the recent Quarterly Index Review, effective August 28, 2019.

MSCI’s previously announced decision to increase the weight of China A shares in the MSCI Indexes using a 3-step inclusion process beginning with the May 2019 Semi-Annual Index Review follows an extensive global consultation with a large number of international institutional investors, including asset owners, asset managers, broker/dealers and other market participants worldwide (source MSCI).

China A-shares are mainland China-based companies whose shares trade on the the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE).  At one time, these shares were available only to Chinese investors, but since 2003 foreign investors can participate through China’s Qualified Foreign Institutional Investor (QFII) system that grants licenses to international investors to buy and sell on China’s stock exchanges.

The Endowment Index™ calculated by Nasdaq OMX® includes a China A shares allocation through the Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR, $27.16) , an ETF that seeks to track the CSI 300 Index.  The CSI 300 Index is composed of the 300 largest and most liquid stocks in the China A Share market.

 

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