MSCI quadruples China A-shares exposure

Phased inclusion

MSCI is to quadruple the amount of China A-shares in its major benchmarks to 20% in 2019, a year after the initial inclusion of Chinese onshore stocks.

The index provider had planned to gradually increase the number of A-shares in its World, Asia Pacific ex Japan and Emerging Markets after introducing 233 large-cap stocks in 2018. A-shares currently make up around 0.8% of the Asia Pacific ex Japan and Emerging Markets indices as well as 0.1% of the broader MSCI All Country World index. Given this latest move, if fully included, China A-shares would account for more than 16% of the MSCI Emerging Markets Index. Additionally, FTSE Russell will also start phased inclusion from June 2019, which will see China A-shares representing 5.5%...