(Yicai Global) Feb. 13 -- US index provider MSCI included Beijing Kingsoft Office Software in its China All Shares Index and China A-Share Onshore Index as part of its latest quarterly adjustment today in the first such debut of a company listed on the Shanghai Stock Exchange's Nasdaq-style Star Market, which formed just last year.
The China All Shares Index embedded nine newbie stocks in this round of adjustment, with the three largest among these by market value being Beijing-Shanghai High Speed Railway, which just wrapped up its initial public offering last month, People's Insurance Company of China and Kingsoft Office Software. The index snubbed Midea Group, however, whose foreign ownership nears the 30 percent ceiling for inclusion, and another two stocks.
MSCI also included six Chinese firms into its Global Standard Indexes, including People's Insurance and Starbucks' rival Luckin Coffee, but spurned Midea and another two Chinese companies. These admissions will take effect after market closing on Feb. 28.
MSCI was to include qualified Star Market stocks into its Global Investable Market Indexes since November, it said in October, adding these companies also made the cut for incorporation into the China Market-related indexes. No such stocks or companies actually made it aboard in that revision, however.
Kingsoft Office Software is a subsidiary of software developer Kingsoft owned by Xiaomi founder Lei Jun that went public on the Star Market on Nov. 18. Its main product is the WPS Office software suite. The firm's share [SHA:688111] price dropped 4.55 percent to CNY220.50 (USD31.6) at today's closing, shrinking its market cap to CNY99.10 billion (USD14.7 billion).
Editor: Ben Armour