China's A-shares 'progress' leads to further index inclusion as FTSE Russell predicts bumper flows

Successful entries prompt weighting increase

clock • 5 min read

Inflows into China A-shares are set for an uplift in the coming years as major index providers announced plans to increase or start including exposure to mainland Chinese shares, while a system that will allow Chinese and UK companies to list in each other's stockmarkets could begin as early as December, according to reports.

Last week, MSCI announced proposals to raise the weighting to domestic China A-shares in some of its indices, following a successful 5% inclusion earlier this year. A-shares are available in the MSCI China and related composite indices, such as MSCI Emerging Markets, with 2.5% added in June and a further 2.5% added in September, bringing the total number of companies up to 235.    China A-shares make their debut in MSCI indices The index provider said it received "overwhelming positive feedback" from investors following the initial implementation and is now looking to increase the ...

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