MSCI is considering lifting the weight of China A shares in its Emerging Markets Index, by lifting the free-float-adjusted market value to 20% from 5% for mainland stocks. The inclusion would occur in two stages in 2019. MSCI is also looking to make equities listed on the tech-heavy ChiNext board eligible from next year, and mid-cap stocks from 2020. Currently the pro forma index weight of China A shares in the MSCI Emerging Market Index is 0.71%, including a total of 235 large cap stocks. With the potential increase of inclusion factor, the pro forma weight of China A shares would further increase to 3.4%, resulting in a total number of A shares securities over 400. The significant lifting of China A shares weighting and the number of stock inclusion are expected to boost investors’ confidence, and post a long term positive impact on China stock market as well as to stabilize the Hong Kong stock market.

HK Economic Journal

General Disclosure and Disclaimer
Frontier Capital Management Limited (“FCM”) is a subsidiary of Frontier Financial Group (“the Group”). It is regulated and licensed by Hong Kong Securities and Futures Commission, also is an Exchange Participant of The Stock Exchange of Hong Kong Limited, and a Direct Clearing Participant of Hong Kong Securities Clearing Company Limited.
The information contained in this website is for informational purposes, and does not intend to recommend, invite, offer, or confirm of any terms. Based on the sources that are believed to be reliable, FCM attempts to provide accurate, complete, and up-to-date information and analysis. However, FCM cannot represent or guarantee its accuracy, completeness, or timeliness of such source and information. Before making any decision on your investment, you should weigh the provided information carefully and bear any responsibility and risk incurred. And you should seek for advice of a professional financial advisor.
The Group, its subsidiaries and connected persons may have held some of the equity securities mentioned in this article, but the Group and FCM will place your financial interests ahead of their own.