China: 2020 and beyond

China: 2020 and beyond

There’s little doubt that both China and its equity market have evolved. As economic and market growth continues – albeit under a volatile macro backdrop – China’s growing role is likely to transform the characteristics of the emerging-market asset class and its role in global portfolios. Developing a strategic approach in evaluating allocation to this equity segment is becoming a high priority. 

What are the major macro themes affecting China’s economy and markets in 2020 and beyond? What is the outlook for major areas of reforms and market liberalization policies over the next three to five years? How might long-term investors think about China’s role in EM and global allocations? Explore MSCI perspectives on all of these questions and find out more on our China offerings within this page.


Research insights

Research insights

China and the future of equity allocations

What does the partial inclusion of China A shares in MSCI indexes mean for global and emerging market equity portfolios?

Liquidity and correlation in the Chinese credit market

China’s stock market has drawn huge attention from global investors, especially as China A shares have been added to leading equity indexes.

The rise of fundamental factors in China A shares

Commonly held perceptions about China A shares have influenced investors to think factor strategies may not work in the Chinese equity markets. Our research suggests this may be changing.

Stress testing US-China trade wars

Amid ongoing U.S.-China trade tension, we have updated our stress test to consider three scenarios for how the situation could unfold — and their impact on currency, bond and equity markets around the world.

Chinese convertibles: Equities in fancy dress?

Chinese corporate bonds that convert to A shares display equity-like characteristics. But investors who view these securities as equities in disguise are overlooking the complexities of the asset class.

China through an ESG lens

Chinese domestic investors and issuers are moving fast to incorporate ESG considerations in their decision making, prodded by regulatory initiatives to promote ESG practices and disclosure. At the same time, there are shortages of skilled talent, rising consumer expectations around product safety, growing climate awareness and increased expectations for shareholder rights.

Recorded webinars

Recorded webinars

China and the future of equity allocations

What does the partial inclusion of China A shares in MSCI indexes mean for global and emerging market equity portfolios?

Dissecting China ESG opportunities

As China’s role in emerging markets is rapidly growing and evolving, investors look for ways to assess and analyze ESG investing opportunities in China.

MSCI China A inclusion post announcement webinar

MSCI announced that it will increase the weight of China A shares in the MSCI Indexes by increasing the inclusion factor from 5% to 20% in three steps in 2019.

China and the future of equity allocations

What does the partial inclusion of China A shares in MSCI indexes mean for global and emerging market equity portfolios?

Dissecting China ESG opportunities

As China’s role in emerging markets is rapidly growing and evolving, investors look for ways to assess and analyze ESG investing opportunities in China.

MSCI China A inclusion post announcement webinar

MSCI announced that it will increase the weight of China A shares in the MSCI Indexes by increasing the inclusion factor from 5% to 20% in three steps in 2019.

Value proposition brochure - Chinese

MSCI increases the weight of China A Shares in MSCI Indexes

 

MSCI increases the weight of China A Shares in MSCI Indexes

MSCI has announced that it will increase the weight of China A shares in the MSCI Indexes by increasing the inclusion factor from its initial level of 5% to 20% in three steps. This decision 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. The proposal to increase the weight of China A shares garnered overwhelming support from investors.

Read the press release

Conclusion of the Consultation on Further Weight Increase of China A Shares in the MSCI Indexes

Q&A on the Weight Increase Of China A Shares In MSCI Indexes

Simulated Constituents of the MSCI China A Indexes

Pro-forma Weight in MSCI Emerging Markets Index  

 

Based on data as of July 18, 2019


MSCI china indexes

MSCI China: Extensive Coverage of the Growing China Equity Market

MSCI China indexes are built on quality-reviewed, enriched datasets backed by 99.96% accuracy levels in index production1. They are calculated using a fully transparent and innovative maintenance methodology with a strong emphasis on enhancing investability and replicability through the use of stringent size and liquidity screens. The indexes aim to represent the performance of a range of opportunity sets of Chinese companies, listed inside and outside China, in the form of different share classes. MSCI Index Methodology.

The flagship China indexes are:

The MSCI China Index is constructed based on the integrated China equity universe included in the MSCI Emerging Markets Index, providing a standardized definition of the China equity opportunity set. The index aims to represent the performance of large- and mid-cap segments with H shares, B shares, red chips, P chips and foreign listings (e.g., ADRs) of Chinese stocks. China A shares will be partially included in this index, making it the de facto index for all of China. It can be used as a China benchmark for investors who use the MSCI ACWI Index or MSCI EM Index as their policy benchmark.

List of constituents for the MSCI China and the MSCI China A Inclusion Indexes (August 2018 Quarterly Index Review)
Impact of Unexpected Exchange Closure Scenarios (August 2018 Quarterly Index Review)

The MSCI China A Index measures large and mid-cap representation across China securities listed on the Shanghai and Shenzhen exchanges. The index covers only those securities that are accessible through "Stock Connect". The index is designed for international investors and is calculated using China A Stock Connect listings based on the offshore RMB exchange rate (CNH).

The MSCI China All Shares Index measures large and mid-cap representation across China A shares, B shares, H shares, Red chips, P chips and foreign listings (e.g. ADRs). The index aims to represent the performance of the opportunity set of China share classes listed in Hong Kong, Shanghai, Shenzhen and outside of China. It is based on the concept of the integrated MSCI China equity universe with China A-shares included.

MSCI is committed to delivering innovative solutions that integrate risk and performance analysis for the opportunities and challenges ahead.
 

MSCI CHINA ALL SHARES METHODOLOGY

MSCI GLOBAL INVESTABLE MARKET INDEXES METHODOLOGY


vMSCI China

MSCI China

MSCI China A

MSCI China All Shares

INDEX FAMILY CATEGORY

China A Shares footnotes

Note:
- A Shares: China securities incorporated in Mainland China, listed on the Shanghai or Shenzhen Stock Exchange and traded in Renminbi (RMB).
- B Shares: China securities incorporated in China and listed on the Shanghai Stock Exchange (USD) or Shenzhen Stock Exchange (HKD).
-
H Shares: China securities incorporated in Mainland China, listed on the Hong Kong Stock Exchange and traded in HK Dollars (HKD).
- Red-Chips: China securities of state-owned companies incorporated outside Mainland China, listed on the Hong Kong Stock Exchange (HKD).
- P-Chips: China securities of non-government owned companies incorporated outside Mainland China, listed on HK Stock Exchange (HKD).
- Overseas-Listed: China securities (including ADRs) listed on foreign exchanges outside of Mainland China and Hong Kong (traded in USD, SGD, KRW etc.)

 

1 Accuracy calculated internally based on the number of corrections performed over total number of securities or data points covered.