Global index provider MSCI has proposed an increase in the weighting of Chinese A-shares in its flagship Emerging Markets index just months after including mainland-listed companies for the first time, despite the country’s stock market slowdown this year.
The New York-listed company said on Wednesday that it was consulting the market — which includes sovereign wealth funds, asset managers and central banks — about boosting exposure to A-shares in the MSCI EM index, which is tracked by $1.9tn of assets.
The proposal would almost double the number of A-shares in the EM index to 434 by May 2020, which MSCI estimates would attract about $66bn from passive and active funds.