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Original title: Adjustment to MSCI Semi-Annual Report No Capital Inflows and No Disclosure of Further Inclusion of A Shares
Summary
[L’adeguamento della relazione semestrale MSCI non comporta afflussi di capitale e non ha espresso la sua posizione sull’ulteriore inclusione di azioni A]After the US stock market on November 10, MSCI announced the semi-annual index review report. Some indices such as the MSCI China Full Circulation Index have been adjusted to include individual stocks, but these indices were more It is used primarily as a benchmark for investments and does not involve major capital inflows. MSCI also did not give a new position on the further expansion of the inclusion of A shares (China Business News)
After the US stock market on November 10, MSCI announced the semi-annual review of the indexrelationship, The MSCI China Full Circulation Index and other index adjustments are included in the individual stocks, but these indices are moreinvestmentReference, does not involve significantCash flowIn. MSCI also did not give a new position on the further expansion of the inclusion of the A shares.
A year ago, in November 2019, MSCI announced that it would increase the inclusion factor of China’s large cap A shares from 15% to 20%, as the final step in the “three-step” inclusion of A shares, of the ‘MSCI Global Index and the MSCI EmergingmarketInclusion of A shares in the index increased by 0.22% and 1.44% respectively. This is the first time that MSCI has included large scale mid cap class A shares.
Last year, data shows that, as of last week, foreign holdings in the A-share secondary market amounted to approximately 92.761 billion shares, with cumulative holdingsMarket value2,295.185 billion yuan, compared to 81.736 billion shares and 1,574.105 billion yuan at the end of 2019, an increase of 13.49% and 45.81% respectively.
Recently, MSCI Asia PacificExecutive DirectorAnd studies on ChinaSupervisorWei Zhen said that the investment portfolio of global investors benefited from the inclusion of A shares.PerformanceFrom the above point of view, the rate of return of the MSCI China A-Share Index exceeds that of the MSCI Global Index and the MSCI EmergingMarket index. However, he said there are still some challenges to be solved in the next phase of expanding inclusion.
60 new stocks have been added and 55 have been removed
According to the MSCI Semi-Annual Review Report, 60 new stocks have been added to the MSCI China Full Circulation Index and 55 have been removed.Calculated by market value, the three biggest new stocks are the wheat and PetroleumArowana、BeiGeneADR (US sharesReceipt from the depositary) And “the first stock of electronic cigarettes”Smol International. Among them, the MSCI China A-Shares Onshore Index will add 58 new stocks and eliminate 23 stocks.In terms of market capitalization, the three largest new stocks areArowana、Great Wall MotorwithLanqi technology。
At the same time, the MSCI China A-share onshore small cap equity index added 293 shares and 22 shares were eliminated; the fully distributed MSCI China small cap equity index added 354 stocks and 45 was eliminated.
However, the stocks in the above indices are outside the scope of the A shares included in the MSCI Emerging Market Index. These indices are more for investors as a reference and do not involve major capital inflows. The MSCI Emerging Markets Index is a benchmark for nearly $ 15 trillion of assets worldwide, with more than 1,000ETFTake the MSCI index as a tracking target.
Additionally, the MSCI ACWI Index will add 141 new stocks, excluding 135 US stocksLarge cap stocks7 new stocks have been added to the index 300 and 10 have been removed. The top three stocks just included in the market capitalization areSynopsys(Synopsys) 、real estateSearch for informationthe companyCostar Group is the largest in the worldinteractivePeloton Interactive, a fitness platform.
It is worth noting that this time MSCI has not announced that it will include the new round of A shares.customerConsultation begins.
Wei Zhen previously mentioned that the reason is that investors have four concerns about increasing the inclusion factor of A-unit to more than 20% of listing.futuresAnd so onProductFailure to do so could reduce the efficiency of A-share investors’ risk management in the MSCI index; China’s A shares have a short settlement cycle, which poses operational risks and monitoring challenges, especially for investors in time zones outside Asia; China Investors Also Concerned Shanghai-Hong Kong Holiday Spreading Stock Connect; investors stressed the urgent need to introduce abottomThe ability of the administrator to place orders on behalf of multiple customer accounts in a unified and simultaneous way.
Incorporation of A shares to enhance foreign portfolio returns and risk diversification
In June 2017, MSCI announced that it would include China’s A shares in the MSCI Emerging Market Index, with an inclusion factor of 5% in 2018.
In September 2018, with the daily share four times higher than Shanghai-Hong Kong Stock Connect and further market reforms, MSCI initiated a new round of consultations on further expansion of the inclusion of shares A. Wei Zhen said that after received extremely positive feedback, MSCI announced in February 2019 that it would increase the inclusion factor to 20% and include it in A shares three times in May, August and November 2019.
Wei Zhen said this process doesInternational investmentsPeople devote more resources to researching A shares.Statistics show that the number of SPSAs launched by institutional investors has gone from less than 1,700 three years ago to 10,600 in June 2020, which shows that foreign investors are interested in the placement of A shares. At the same time, as of June 2020, the value of the A stock market held by Northbound funds reached 1.7 trillion yuan.
A shares are also useful for increasing the income of international investment portfolios,Spread the riskIt played a significant role. Wei Zhen said that from a return perspective, from 31 May 2018 to 31 August 2020, the rate of return of the MSCI China A-share index was 28.9%, while the rates of return of the MSCI Emerging Market Index and the MSCI World were 4.35% and 22.2% respectively; from a risk diversification perspective, around May 2018, the correlation between A shares and other emerging and developed markets is relatively low.
According to MSCI, the next research step is to assess the role of emerging market allocation as the representativeness of A shares in the index continues to rise, and to study emerging market investment policy and the role of China based on political considerations. general; By starting to use A-shares as part of emerging markets, investors less sensitive to benchmarks can specifically allocate Chinese assets (or even just A-shares) to increase their China-related businesses.Exposure。
(Source: China Business News)
(Responsible publisher: DF522)
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