MSCI Introduces First A-Share Inclusion Indexes as New Barometer of International Capital Movements
Liao Shumin
DATE:  Oct 25 2017
/ SOURCE:  Yicai
MSCI Introduces First A-Share Inclusion Indexes as New Barometer of International Capital Movements MSCI Introduces First A-Share Inclusion Indexes as New Barometer of International Capital Movements

(Yicai Global) Oct. 25 -- MSCI Inc., the world's biggest stock index provider, unveiled the MSCI China A Inclusion Indexes in a press briefing yesterday, alongside plans to rename the MSCI China A Share Indexes and roll out a new set of A-share indexes.

The firm will include constituents of the MSCI China A Inclusion Indexes in the MSCI Emerging Markets Indexes, the firm said on its website. It will publish details of stock distribution by sector later this week after the release of the new indexes.

The new indexes will serve as a key barometer of the inflow of international capital into the A-share market for Chinese investors, Securities Times cited several industry insiders as saying.

Firms on the MSCI China A Inclusion Indexes will shape the direction of future global capital allocations toward the A-share market, so institutions and investors can track foreign capital movements by monitoring the indexes or by developing investment products based on them, one insider said.

The MSCI index for China-related stocks rose by 0.69 percent on the news yesterday, representing the largest gain among all concept indexes. More than 70 percent of China-related stocks included on the MSCI index traded higher during the day.

MSCI has revised plans for the implementation of the A-share inclusion scheduled for Dec. 1. It will rename the MSCI China A International Large Cap Index as the MSCI China A Large Cap Index, and begin to calculate the MSCI China Temporary Index through the A-share stock connect platforms using offshore yuan exchange rates as a basis.

The firm will also rename the MSCI China A Share Indexes as the MSCI China A Share Onshore Indexes, starting from March 1 next year. It will also introduce the new MSCI China A Index, with stock included limited to those available through the Shanghai-Hong Kong and Shenzhen-Hong Kong stock connect programs.

MSCI will release detailed documents on the matter in the first quarter of next year.

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Keywords:   MSCI China A Inclusion Indexes,MSCI,Stock Indexes