Global index provider MSCI has launched 12 A-share indices that will expand MSCI’s China index offering to prepare global investors for the next step of the China A inclusion process.
On June 20, 2017, MSCI announced it would partially include the large cap China A shares in the MSCI Emerging Markets index and the MSCI ACWI index. With A shares to be partially included effective June 1, 2018, the MSCI China indexes will cover all share types of Chinese companies listed globally.
The new MSCI China A indexes reflect China A shares opportunity set, and follow MSCI Global Investable Markets indexes methodology and stock connect eligibility constraints for large cap and mid cap companies. These indexes expand the range of the MSCI China All Shares indexes that represent the opportunity set of the integrated MCSI China equity universe where China A shares are fully represented.
The new indexes also broaden the range of the MSCI China A International indexes which represent the A share component of the MSCI China All Shares index, excluding the Stock Connect eligibility constraints.