MSCI unveiled a list of 234 Chinese A-share stocks that will be added to its emerging markets index. The MSCI Emerging Markets index is used as a benchmark for over $1.5 trillion in assets.
MSCI had proposed adding A-shares to the Emerging Markets index three times since 2013, but was rebuffed by stakeholders — primarily large asset managers — concerned about their ability to move money more freely in and out of the country.
The turning point came with the growth of the stock connect programme, which was created in 2014 but has expanded rapidly over the past few years. The dual trading links between Hong Kong and the Shanghai and Shenzhen markets enable overseas investors to access the China A-share market through their accounts in Hong Kong.
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Jeremy Jones, CFA
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