Dec 07, 2018 (China Knowledge) - Global equity index provider S&P Dow Jones Indices will begin with their inclusion of Chinese A-shares in its global benchmarks next year, hot on the heels with the rest of the global equity index providers.
Global market research and index company MSCI Inc. has announced plans to add around 230 China-listed shares to its emerging market benchmark over a two-step process, which had kicked off earlier in June. MSCI has also announced plans to increase the inclusion factor of MSCI China A Large Cap securities to 20% of their free float-adjusted market capitalization. FTSE Russell had also released the ground rules for FTSE Global China A Inclusion Index Series last month.
S&P Dow Jones Indices will add eligible A-shares that are currently tradable through the Northbound channel of the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect to its Global Benchmark Indices starting on 23 September, 2019.
In the statement released by the company, shares included will use a reduced weight factor of 25% of each company’s investable weight factor in calculation.
China has been stepping up with the opening up of its financial market this year. President Xi Jinping also showed his commitment towards financial market reforms in his speech during the first China International Import Expo.
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