MSCI Inc.  has  announced today that beginning in June 2018, it will include China A shares in the MSCI Emerging Markets Index.

This decision has broad support from international institutional investors with whom MSCI consulted, primarily as a result of the positive impact on the accessibility of the China A market of both the Stock Connect program and the loosening by the local Chinese stock exchanges of pre-approval requirements that can restrict the creation of index-linked investment vehicles globally.

MSCI plans to add 222 China A Large Cap stocks, representing on a pro forma basis approximately 0.73% of the weight of the MSCI Emerging Markets Index at a 5% partial Inclusion Factor.  A two-step inclusion process will be used to account for the existing daily trading limits on Stock Connect. The first inclusion step would coincide with the May 2018 Semi-Annual Index Review followed by the second step which would take place as part of the August 2018 Quarterly Index review.

PRESS RELEASE: MSCI Announces Results of the 2018 Annual Market Classification Review - English I Chinese

 

Watch Sebastien Lieblich, MSCI Managing Director, discuss the announcement

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Press Release

New York – June 20, 2017 – MSCI Inc. (NYSE: MSCI), a leading provider of global equity indexes, announced today that beginning in June 2018, it will include China A shares in the MSCI Emerging Markets Index and the MSCI ACWI Index.

MSCI Annual Market Classification Review

During the Annual Market Classification Review, MSCI analyzes and seeks feedback on those markets it has placed under review for potential market reclassification.

Additional Details on the 2017 Annual Market Classification Review

MSCI announced on June 20 that it will include 222 China A Large Cap shares in the MSCI Emerging Markets Index using a 2-step inclusion process beginning in June 2018.