SHANGHAI :
MSCI's Final Boost Could Bring up to USD40 Billion Into Chinese Markets, CICC Says
Tang Shihua
DATE:  Nov 08 2019
/ SOURCE:  yicai
MSCI's Final Boost Could Bring up to USD40 Billion Into Chinese Markets, CICC Says MSCI's Final Boost Could Bring up to USD40 Billion Into Chinese Markets, CICC Says

(Yicai Global) Nov. 8 -- Chinese capital markets could receive up to USD40 billion in foreign inflows after global index provider MSCI will complete its plan to reach a 20 percent weighting of Chinese mainland shares in its MSCI Emerging Markets Indexes on Nov. 26, according to a leading Chinese investment bank.

This adjustment will drive much bigger overseas capital inflows than the preceding two steps did, bringing in at least USD35 billion, Beijing-based China International Capital predicted in a statement.

The inclusion factor for the 268 equities will be lifted to 20 percent from 15 percent after markets close on Nov. 26, the New York-headquartered firm said in its semi-annual index review on Nov. 7. Chinese stock markets opened higher this morning prompted by the announcement.

In March, MSCI said that it will phase in Chinese shares, aiming for a quadrupled weighting by this month. Soon after, FTSE Russell and S&P Dow Jones followed suit. As a result, net inflows of foreign capital surged in the first three weeks of September to reach more than one-quarter of this year's total, the Economic Information Daily reported at that time.

Some 204 shares, 189 of which are mid-caps, will be included in the MSCI China Index, the US financial giant said on Nov. 7. Chinese mainland equities will have a 12.1 percent weight in the MSCI China Index and a 4.1 percent one in the MSCI Emerging Markets Index.

Editor: Emmi Laine 

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Keywords:   MSCI Index,Emerging Markets,CICC,China A-Shares,Foreign Capital