MSCI includes China’s ‘A’ shares into emerging markets index
KUALA LUMPUR: Morgan Stanley Capital International Inc. (MSCI) has decided to include China's “A” large-cap shares in its Emerging Markets Index, giving international investors access to the country's stock market.
In a statement yesterday, China HSBC's chief executive Helen Wong said the decision was a pivotal moment for global investment in China's capital market.
“While the initial weighting is relatively small, this is the start of a process through which Chinese equities will achieve a prominence in global investors' portfolios, that reflects the size and significance of China's domestic stock market and its economy.
“It will also provide impetus for the continuing internationalisation of the Renminbi as a global investment currency,” she added.
She said the MSCI Emerging Markets Index is the performance benchmark for around US$1.5 trillion of investments, so it is expected that the inclusion of “A” shares would be a catalyst for substantial inflows into China's market over time.
The successful launches of the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect schemes paved the way for this index inclusion, and China's ongoing commitment to liberalising global access to its markets, will continue to create exciting opportunities for investors, Wong added.
Meanwhile, Maybank IB said on the local front, the decision to include China's “A” shares did not seem to excite the market.
It said the Chinese shares continued to trade in sideways consolidation mode. — Bernama