MSCI to Lift China Mainland Equity Weighting to 15% as Planned
Zhang Yushuo
DATE:  Aug 08 2019
/ SOURCE:  yicai
MSCI to Lift China Mainland Equity Weighting to 15% as Planned MSCI to Lift China Mainland Equity Weighting to 15% as Planned

(Yicai Global) Aug. 8 -- MSCI plans to raise the weighting of all large cap Chinese mainland stocks, or A-shares, in its indexes as scheduled this month.

The New York-based global index compiler will increase the so-called inclusion factor for 260 A-shares that are already included in indexes to 15 percent from 10 percent after markets close on Aug. 27, it said in a statement today.

Eight stocks will also be added to the MSCI China Index with the upper weighting following the firm's regular quarterly review of its indexes. The stocks will have a weighting of 7.79 percent and 2.46 percent in the MSCI China and MSCI Emerging Markets Indexes, respectively.

Seven shares will be added and 11 removed from the MSCI China All Shares Indexes. The three largest additions by market capitalization will be hotpot restaurant chain Haidilao International Holding, China Rail Group and Wanhua Chemical Group.

There will be one addition to and three deletions from the MSCI China All Shares Small Cap Index. There will be 10 additions to and no deletions from the MSCI China A Onshore Index, with the three biggest add-ons being People's Insurance, China Railway Group and Wanhua Chemical Group.

MSCI expects to raise the percentage of all large cap A-shares in indexes to 20 percent from 15 percent in its first-half review in November, the firm said in March.

Northbound investment in MSCI A-share index components have risen by nearly CNY400 billion (USD56.8 billion) since the weighting was first raised in May, according to data from the Egsea A-share information platform under the Securities Times.

Editor: Ben Armour

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Keywords:   MSCI,A-shares