Index provider MSCI doubles its A-share inclusion to 5%
Ten more A shares including China Shenhua Energy, China Unicom and ZTE, will be added to the most recent quarterly index review
Stock market index provider MSCI said it will continue the second phase of partial inclusion of Chinese A shares in the MSCI Emerging Markets Index and other indexes, The Paper reported.
The inclusion factor of existing A shares will be increased from 2.5% to 5%.
Ten more A shares including China Shenhua Energy, China Unicom and China’s second-largest telecom equipment maker ZTE, will be added as part of the most recent quarterly index review, taking the total number of A shares in the MSCI China Index to 236.
Meanwhile, 13 additions will also be added to the China All Shares Index.
The new inclusion of A shares is expected to bring further capital injections into the Chinese market. According to Xie Zhengyu, managing director of MSCI, this will bring about $US22 billion in capital inflow to the A-share market.
The changes will take effect at the end of August.