msci china a inclusion roadmap

3 0 obj x��T�n�0}7��T��$�bE����M�5)6�؃�:i�4��˾i9җ4�� ��!yH They understand – as do most EM leaders – that economic stagnation poses a major risk to their ability to hold on to power. China’s A-share market*, the world’s second largest stock market (USD 7.4 trillion market cap), is reaching a milestone for internationalization. ROADMAP OF FUTURE CHINA A SHARES INCLUSION 9 . LAUNCH OF PROVISIONAL INDEXES 10 •MSCI will start to calculate the MSCI China A International Large Cap Provisional Index on June 21, 2017 •Additional global and regional provisional indexes including the MSCI China and MSCI Emerging Markets Provisional Indexes, will be launched in August 2017 •These provisional indexes … As of 28 February 2017, the MSCI China A International Index (a free-float adjusted market capitalization weighted index calculated based on the Foreign Inclusion Factor and subject to Foreign Ownership Limits) represented 78% of the market capitalization of the MSCI China A Index. In our view, the process is likely to be long and gradual that could take up to 10 years, judging … MSCI highlighted nine potential improvements as a road map to a … As such, it will be more feasible for global investors to invest in the firm's "new definition" of China. The two standalone indices reflect the full-inclusion scenario outlined in MSCI’s recent consultation document, which identified a roadmap for the inclusion of China A-Shares in the MSCI Emerging Markets Index, launched earlier this year as part of its annual market classification review. The inclusion could encourage more foreign institutional investors to participate in the onshore A-share market, which is currently dominated by retail investors. Enter The Dragon: MSCI China A-share Inclusion. The MSCI inclusion of China ‘A’ shares into its emerging market (EM) and World indices entails adding 222 large-cap stocks, which have a total full market cap of $3.8 trillion. 5 MSCI. Together with the China A-shares that have H-Shares listings included in the MSCI China Index, these stocks represent 59% of the MSCI China A Index, or 76% of the MSCI China A International Index, by our estimate. China exchange traded funds (ETFs) slumped Monday following news that index provider MSCI Inc. is postponing the transition MSCI All China Indexes to the MSCI China … �+c)��f�zr�� ��`͓�=I���=Np3>�%�)/o�*�p�����4]���xiD���H �)��(? China roadmap By Jan Dehn Continued overleaf The good news is that China’s leaders have understood for the better part of ten years that change is needed. It is expected that, after two stages of inclusion (the second to take place in September), China A-shares will account for 0.78% of the MSCI Emerging Markets Index. The new proposal appears to have addressed the first two obstacles, while MSCI stated in the "Consultation on China A-shares Potential Inclusion" dated 24 March 2017 that it is in discussions with China exchanges in an attempt to resolve the third obstacle. The note, entitled Tracking the MSCI Inclusion: the MSCI China A Index versus the CSI 300 Index , argued the MSCI China A index is more tailored for foreign ownership than the CSI 300, which does not take this factor into account. No initial inclusion of IPO given Connect investors cannot participate in primary offerings. Step 3: MSCI will increase the inclusion factor of all China A large-cap shares in the MSCI Indexes from 15 percent to 20 percent and add China A mid-cap shares, including eligible ChiNext shares, with a 20 percent inclusion factor coinciding with the November 2019 Semi-Annual Index Review. ZC8=m��^���w2���R*���%X#aY���X�A�bda� MSCI’s proposal has been a 5% partial inclusion of China A-shares into the MSCI Emerging Markets Index effective in June 2017, which translates to about 1.1% weight of A-shares in the index tracked by $1.5trn of funds around the globe. Total fund flow is the capital inflow into an ETF minus the capital outflow from the ETF for a particular time period.. Fund Flows in millions of U.S. endobj Implementation for index changes linked to corporate events and quarterly review to be postponed to the next day if event effective date falls on a Connect market holiday or due to market closure linked to a daily limit breach. Some 204 China A shares, 189 of which are Mid Caps, were added to the MSCI China Index and the inclusion factor for 268 existing constituents was increased from 15 percent to 20 percent. (b[E�eZ�?౤�� �J~����Or3)�tie���A�dJ����T,^�'\��~�K�э�T�8b�-)P�?BD��ZӰ�j@�Uf���`t� ��^�1���i���_v���rT�O�� ��ro����u� ��ڰ��u }! The MSCI China A Index reflects a 20% inclusion factor for China A large-cap, mid-cap, and eligible ChiNext shares within the MSCI Emerging Markets Index. New MSCI Proposal on China A-Share Inclusion According to MSCI's "Consultation on China A-Shares Potential Inclusion" dated 24 March 2017, MSCI unveiled a new proposal for the inclusion of China A-Shares in its global equity benchmarks.Highlights of the new proposal are as follows: Universe. These companies are also available via the Hong Kong- China Stock Connect program. Consultation on China A-Shares Index Inclusion Roadmap. CONSULTATION ON CHINA A-SHARES INDEX INCLUSION ROADMAP June 2015 Updated Post 2015 MSCI Market Classification Review •In March 2014, MSCI launched the Consultation on China A-Shares Index Inclusion Roadmap •Substantial progress has been made toward the opening of the Chinese equity market and China A-shares remain on track for potential inclusion into the MSCI … <>>> :M��5� A_s�o��o����F����1��T���N��t55,�V���k��*[T2-�ǔ=�0�3tJ%�9�$j%�z�@��y�����C^������M�l�Uʞ_�I�ά�(�˰�g'���|I�_\ダSU_Q�e�|�^h�MfԜ�. Highlights of the new proposal are as follows: Corporate Event and rebalancing implementation. At the time MSCI said it would remove China from its annual review process. With over $1.5 trillion benchmarked to the MSCI Emerging Markets Index alone*, full inclusion of Mainland Chinese equities could see significant flows into the securities KBA owns today. Specifically, ETFs tracking the affected indices, such as the MSCI China Index and the MSCI Emerging Markets Index, would be able to access the new stocks more freely and easily through the Stock Connects (albeit daily investment quota exists), without the need for the ETF provider to apply as a QFII/RQFII. UBS Securities China Equity Strategy team estimated this … The MSCI China A index has a number of “distinct advantages” over other mainland China benchmarks, according to a research note by ETF issuer KraneShares. Companies accessible through the Shanghai-Hong Kong Stock Connect Programmes are at the msci china a inclusion roadmap MSCI said it not... This … China will have to wait a while for global indexes embrace. New plan factor-adjusted ’ ( FIF ) market Cap �V���k�� * [ T2-�ǔ=�0�3tJ % �9� $ j �z�... November 2019 “ overlap ” refers to dual-listed shares in both MSCI China.... 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