MSCI will announce on Tuesday whether it will include China’s domestically-listed A-shares in its benchmark indices. It has chosen not to in the past on concerns over market access and official intervention. Another issue is the sheer size of China’s markets: weighted by market capitalisation, shares listed in China and Hong Kong would account for over 40% of the MSCI EM index. Some of the access concerns have been addressed. More important, MSCI has come up with a fudge to give A-shares only a token inclusion: they would account for only 0.5% of the EM index. As such, the impact of China’s inclusion would be small. Perhaps US$8bn would flow into China’s stock markets as a result, equivalent to just 0.1% of domestic stock market capitalization.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services