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Global index provider MSCI has launched 12 A-share indices ahead of the inclusion of mainland Chinese stocks in its flagship emerging markets benchmark, which will fully open up the market to international investors for the first time.
MSCI said on Wednesday that the new indices provide a greater range of ways to access specific parts of the A-shares market, which are stocks listed on the exchanges in mainland China.
The range includes the MSCI China A index, the MSCI A Large Cap index, and the MSCI China A Mid Cap index, among others.
The launch comes ahead of the inclusion of A-shares within MSCI’s flagship Emerging Markets index in June, as well as its MSCI ACWI index.
Bringing A-Shares into the EM index will compel global investors, ranging from large pension funds to asset managers that track the benchmark to invest in these Chinese mainland stocks.
The move fully opens up access to the mainland Chinese stock market for global investors, who have traditionally invested in Hong Kong listed Chinese companies, or through Hong Kong Stock Exchange’s trading programme, called Stock Connect, which allows overseas investors to buy A-shares via Hong Kong.