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MSCI shuns most of China's US$7 trillion market in index proposal

Bloomberg Published on Tue, Mar 28, 2017 / 11:10 AM GMT+8

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SINGAPORE (March 28): MSCI Inc.’s latest attempt to bridge the gap between China and global asset managers involves whittling down the number of shares that index-tracking investors may be forced to own by more than half.

Only 169 mainland China-listed companies will be considered for inclusion by benchmark gauges, down from 448 under a previous proposal, and all will be large-cap shares currently accessible to foreign investors through exchange links with Hong Kong. The weighting of yuan denominated stocks, known as A shares, would be just 0.5% of the MSCI Emerging Market Index, half the previous suggested level, according to a consultation paper published on MSCI’s website Wednesday.