BEIJING, Aug. 12 (Xinhua) -- MSCI Inc., a global leading indices provider, announced to add new Chinese A-share listing stocks into the MSCI China A Onshore Indexes and MSCI China All Shares Indexes in its latest quarterly review of equity indexes, reported Xinhua Finance on Friday.
MSCI announced seven additions to and five deletions from the MSCI China A Onshore Index and the three largest additions will be Qinghai Salt Lake Industry Co., Ltd. (000792.SZ), Pylon Technologies (688063.SH) and Jiangsu Pacific Quartz Co., Ltd. (603688.SH).
MSCI added eight China stocks to and deleted two ones from the MSCI China All Shares Index and stocks of the above-mentioned three A-share companies are also to be the three largest additions to the index.
Among the new additions, most of them are new energy industry players. These adjustments will be implemented as from the closing on August 31, 2022 and by then, the new additions may embrace purchasing by passive funds tracking the related MSCI China indexes, according to the report.
Compared with many other external stock markets, China's stock market remains more attractive in terms of valuation despite the recent rallies, said the report citing global asset management giant Abrdn plc.
For instance, the forward price to earnings ratio (P/E) of stocks tracked by MSCI China indexes stood at merely 11.1, far lower than the comparable data of MSCI U.S. equity indexes and MSCI World index, according to Abrdn.
Meanwhile, Chinese companies' forward earnings are believed to be sufficiently high. Under such circumstances, Abrdn held that it has enough reasons to be optimistic about the prospects of China's stock market, highlighting that it favors companies which own solid business fundamental, bear limited impacts from the macro-economic risks and have relatively low stocks valuation. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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