MSCI has announced the successful completion of the third and final phase of the 20% partial inclusion of China A shares in the MSCI indexes, including in the MSCI Emerging Markets index.
As of the close of markets on 26 November 2019, the MSCI indexes will include 472 China A shares, comprised of 244 large cap and 228 mid cap securities. The weight of China A shares in the MSCI ACWI and MSCI Emerging Markets indexes will reach 0.5% and 4%, respectively. The MSCI China index, which includes China A shares and offshore listed shares, will include 710 securities representing 4% and 34% of the MSCI ACWI and MSCI Emerging Markets Indexes, respectively.
Any further inclusion of China A shares in the MSCI Indexes would follow a public consultation and be reviewed against the progress made towards addressing the remaining market reforms highlighted by international institutional investors.
MSCI will launch a public consultation on further inclusion of China A shares in MSCI Indexes only after all the above-mentioned concerns have been addressed by the Chinese authorities in order to continue to facilitate international investment.