November 27, 2019
MSCI Inc. (NYSE: MSCI), a leading provider of research-based indexes and analytics, is pleased to announce today 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 November 26, 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.
As previously stated, 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. During MSCI’s most recent public consultation on China A inclusion1 investors stressed the need to resolve the following concerns ahead of consideration of further inclusion:
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.
MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 45 years of expertise in research, data and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process. To learn more, please visit www.msci.com.
1 MSCI conducted a public consultation on the increased weighting of China A Shares in MSCI Indexes from September 2018 – February 2019.
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