Delegates of the listed companies pose for a group photo at the Shanghai Stock Exchange in Shanghai, east China, July 22, 2019. (Xinhua/Fang Zhe)
BEIJING, June 2 (Xinhua) -- With the inclusion factor up to 20 percent, weight of China shares in the MSCI Emerging Markets Index has grown from 18 percent at the end of 2019 to 38 percent by the end of 2021, reported Securities Daily on Wednesday.
Since the inclusion of A-shares into the index in June 2018, faster paces of internationalization on China's A-share market kept attracting foreign investment in A-shares and their holdings also posted notable growths, said the report citing Wei Zhen, head of APAC index solutions research with MSCI, the global leading index provider.
Being included into the MSCI Emerging Markets Index enabled China's A-shares to be tracked by lots of passive funds and MSCI also rolled out a series of A-share related indexes, which helped draw more international institutions and global capital, Dong Dengxin, dean of the finance and securities research institute of Wuhan University of Science and Technology told the newspaper.
From the closing on May 31, the latest indexes review of MSCI has taken effect and the company added into the stocks tracked by the MSCI China index 28 new A-shares and deleted 21 old ones.
Among the 28 newly-added A-shares, around one third of them are shares of energy and raw materials companies and another one third consist of shares of semiconductor, medicine and electrical equipment firms.
Gui Haoming, chief market expert with Shenwan Hongyuan Securities said that when A-shares were partially included in the underlying stocks of MSCI Emerging Markets Index in 2018, most of them were mainly blue chip stocks, but more and more sci-tech, medical and internet A-shares were added later, hinting more knowledge of MSCI about the China market and global investors' increasing optimism in the growth prospects of companies in China. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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