MSCI Completes the Successful Implementation of Final Phase of the 20% Partial Inclusion of China A Shares in MSCI Indexes
MSCI Inc. (NYSE: MSCI), a leading provider of research-based indexes and analytics, is pleased to announce today the successful completion of the third and final phase of the 20% partial inclusion of China A shares in the MSCI Indexes, including in the MSCI Emerging Markets Index.
As of the close of markets on November 26, 2019, the MSCI Indexes will include 472 China A shares, comprised of 244 large cap and 228 mid cap securities. The weight of China A shares in the MSCI ACWI and MSCI Emerging Markets Indexes will reach 0.5% and 4%, respectively. The MSCI China Index, which includes China A shares and offshore listed shares, will include 710 securities representing 4% and 34% of the MSCI ACWI and MSCI Emerging Markets Indexes, respectively.
As previously stated, any further inclusion of China A shares in the MSCI Indexes would follow a public consultation and be reviewed against the progress made towards addressing the remaining market reforms highlighted by international institutional investors. During MSCI’s most recent public consultation on China A inclusion1 investors stressed the need to resolve the following concerns ahead of consideration of further inclusion:
- Access to hedging and derivatives instruments: International institutional investors require liquid on and offshore index futures and options contracts in order to expand their allocation to China and manage their increased exposure. Index futures and options contracts are critical risk management tools for global investors, particularly for complex, deep and varied equity markets such as in China.
- Short settlement cycle for China A shares: International institutional investors have highlighted that they continue to face significant operational challenges and risks in dealing with the short settlement cycle of China A shares. China currently operates on a T+0/T+1 non-Delivery versus Payment (non-DVP) settlement cycle. Most markets in the MSCI ACWI operate currently on a T+2/T+3 DVP settlement cycle.
- Trading holidays of Stock Connect: International institutional investors are concerned with the misalignment between onshore China and Stock Connect holidays. Given that most global institutional investors currently rely on Stock Connect as the primary access channel for China A shares, it is important that the current trading holiday arrangement be reviewed to minimize unnecessary investment frictions.
- Availability of Omnibus trading mechanism in Stock Connect: Many large fund managers and broker dealers have highlighted the pressing need for a well- functioning omnibus mechanism. The ability to place a single order on behalf of multiple client accounts is critical to facilitate best execution and lower operational risk to international institutional investors.
MSCI will launch a public consultation on further inclusion of China A shares in MSCI Indexes only after all the above-mentioned concerns have been addressed by the Chinese authorities in order to continue to facilitate international investment.
MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 45 years of expertise in research, data and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process. To learn more, please visit www.msci.com.
1 MSCI conducted a public consultation on the increased weighting of China A Shares in MSCI Indexes from September 2018 – February 2019.
This document and all of the information contained in it, including without limitation all text, data, graphs, charts (collectively, the “Information”) is the property of MSCI Inc. or its subsidiaries (collectively, “MSCI”), or MSCI’s licensors, direct or indirect suppliers or any third party involved in making or compiling any Information (collectively, with MSCI, the “Information Providers”) and is provided for informational purposes only. The Information may not be modified, reverse-engineered, reproduced or redisseminated in whole or in part without prior written permission from MSCI.
The Information may not be used to create derivative works or to verify or correct other data or information. For example (but without limitation), the Information may not be used to create indexes, databases, risk models, analytics, software, or in connection with the issuing, offering, sponsoring, managing or marketing of any securities, portfolios, financial products or other investment vehicles utilizing or based on, linked to, tracking or otherwise derived from the Information or any other MSCI data, information, products or services.
The user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. NONE OF THE INFORMATION PROVIDERS MAKES ANY EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS WITH RESPECT TO THE INFORMATION (OR THE RESULTS TO BE OBTAINED BY THE USE THEREOF), AND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH INFORMATION PROVIDER EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES (INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF ORIGINALITY, ACCURACY, TIMELINESS, NON-INFRINGEMENT, COMPLETENESS, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE) WITH RESPECT TO ANY OF THE INFORMATION.
Without limiting any of the foregoing and to the maximum extent permitted by applicable law, in no event shall any Information Provider have any liability regarding any of the Information for any direct, indirect, special, punitive, consequential (including lost profits) or any other damages even if notified of the possibility of such damages. The foregoing shall not exclude or limit any liability that may not by applicable law be excluded or limited, including without limitation (as applicable), any liability for death or personal injury to the extent that such injury results from the negligence or willful default of itself, its servants, agents or sub-contractors.
Information containing any historical information, data or analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. Past performance does not guarantee future results.
The Information should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. All Information is impersonal and not tailored to the needs of any person, entity or group of persons.
None of the Information constitutes an offer to sell (or a solicitation of an offer to buy), any security, financial product or other investment vehicle or any trading strategy.
It is not possible to invest directly in an index. Exposure to an asset class or trading strategy or other category represented by an index is only available through third party investable instruments (if any) based on that index. MSCI does not issue, sponsor, endorse, market, offer, review or otherwise express any opinion regarding any fund, ETF, derivative or other security, investment, financial product or trading strategy that is based on, linked to or seeks to provide an investment return related to the performance of any MSCI index (collectively, “Index Linked Investments”). MSCI makes no assurance that any Index Linked Investments will accurately track index performance or provide positive investment returns. MSCI Inc. is not an investment adviser or fiduciary and MSCI makes no representation regarding the advisability of investing in any Index Linked Investments.
Index returns do not represent the results of actual trading of investible assets/securities. MSCI maintains and calculates indexes, but does not manage actual assets. Index returns do not reflect payment of any sales charges or fees an investor may pay to purchase the securities underlying the index or Index Linked Investments. The imposition of these fees and charges would cause the performance of an Index Linked Investment to be different than the MSCI index performance.
The Information may contain back tested data. Back-tested performance is not actual performance, but is hypothetical. There are frequently material differences between back tested performance results and actual results subsequently achieved by any investment strategy.
Constituents of MSCI equity indexes are listed companies, which are included in or excluded from the indexes according to the application of the relevant index methodologies. Accordingly, constituents in MSCI equity indexes may include MSCI Inc., clients of MSCI or suppliers to MSCI. Inclusion of a security within an MSCI index is not a recommendation by MSCI to buy, sell, or hold such security, nor is it considered to be investment advice.
Data and information produced by various affiliates of MSCI Inc., including MSCI ESG Research LLC and Barra LLC, may be used in calculating certain MSCI indexes. More information can be found in the relevant index methodologies on www.msci.com.
MSCI receives compensation in connection with licensing its indexes to third parties. MSCI Inc.’s revenue includes fees based on assets in Index Linked Investments. Information can be found in MSCI Inc.’s company filings on the Investor Relations section of www.msci.com.
MSCI ESG Research LLC is a Registered Investment Adviser under the Investment Advisers Act of 1940 and a subsidiary of MSCI Inc. Except with respect to any applicable products or services from MSCI ESG Research, neither MSCI nor any of its products or services recommends, endorses, approves or otherwise expresses any opinion regarding any issuer, securities, financial products or instruments or trading strategies and MSCI’s products or services are not intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Issuers mentioned or included in any MSCI ESG Research materials may include MSCI Inc., clients of MSCI or suppliers to MSCI, and may also purchase research or other products or services from MSCI ESG Research. MSCI ESG Research materials, including materials utilized in any MSCI ESG Indexes or other products, have not been submitted to, nor received approval from, the United States Securities and Exchange Commission or any other regulatory body.
Any use of or access to products, services or information of MSCI requires a license from MSCI. MSCI, Barra, RiskMetrics, IPD, and other MSCI brands and product names are the trademarks, service marks, or registered trademarks of MSCI or its subsidiaries in the United States and other jurisdictions. The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of MSCI and Standard & Poor’s. “Global Industry Classification Standard (GICS)” is a service mark of MSCI and Standard & Poor’s.
Sam Wang +1 212 804 5244
Melanie Blanco +1 212 981 1049
Laura Hudson +44 20 7336 9653
Rachel Lai +852 2844 9315
MSCI Global Client Service
EMEA Client Service + 44 20 7618.2222
Americas Client Service +1 888 588 4567 (toll free)
Asia Pacific Client Service + 852 2844 9333
About Business Wire
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Disruptive.Asia Comments on How Huawei and ONDE Are Helping Thailand Fight COVID-19 and Go Digital at the Same Time3.8.2020 11:00:00 EEST | Press release
Disruptive.Asia has talked to Vunnaporn Devahastin, Secretary General of the Office of the National Digital Economy and Society Commission (ONDE) of Thailand, which is collaborating with Huawei Technologies on various fronts to not only fight COVID-19 with digital technologies, but advance and accelerate Thailand’s efforts to become a digital nation, in this week’s Huawei Better World Summit. According to Vunnaporn Devahastin, there are 3 key ONDE initiatives to combat COVID-19, which are enabling government agencies and state enterprises to implement work-from-home (WFH) policies, raising sellers’ capabilities in e-commerce and enhancing rural connectivity, and providing financial support to create the Digital Economy and Society (DES) Development Fund. Meanwhile, Thailand’s Ministry of Digital Economy and Society (MDES) has been working with Huawei Technology (Thailand) Co Ltd to find ways that medical staff can leverage advanced digital technologies powered by the integration of 5G,
REPLY: Protocube Reply Presents Its Virtual Interactive Showroom Solution for the Virtualization of Environments and Products3.8.2020 10:30:00 EEST | Press release
Protocube Reply, the Reply Group company specializing in the creation of virtual environments, makes available from today its Virtual Interactive Showroom solution aimed at virtualizing environments and products for B2C and B2B markets. Through the potential offered by 3D technology, the solution enables an effective digital transposition of objects and events traditionally necessitated by physical interaction - such as exhibition venues, trade shows and consumer products - and aims to respond to the needs for new opportunities and forms of business outlined by the companies and customers that were most affected by the COVID-19 outbreak. Virtual Interactive Showroom is aimed in particular at operators and players in the trade fair industry thanks to its high level of involvement and engagement with customers and visitors (buyers, retailers, end customers). The solution allows for the seamless exploration of virtual environments, either independently or with the support of remote operat
Simpson Thacher Adds Leading Private Equity Lawyer James Howe3.8.2020 10:00:00 EEST | Press release
Simpson Thacher & Bartlett LLP announced today that James Howe has joined its Mergers and Acquisitions Practice as a Partner in the London office. “We are very pleased to welcome James to Simpson Thacher,” said Bill Dougherty, Chairman of Simpson Thacher’s Executive Committee. “His extensive experience advising private equity firms and financial institutions on complex deals in the United Kingdom, continental Europe and around the world will further enhance our strong London-based platform.” James is a rising star in private equity M&A who focuses on cross-border leveraged buyouts, mergers and acquisitions and corporate finance transactions. He has advised a wide range of clients across the globe, including many of the world’s leading private equity sponsors and financial institutions. He joins the Firm from Gibson, Dunn & Crutcher LLP. “Given his experience advising many of the most sophisticated private equity sponsors on a wide range of high-profile transactions, James is a perfect
Boosting Investment in R&I: €100,000 donation by kENUP Foundation to Malta’s COVID-19 R&D Fund1.8.2020 11:23:00 EEST | Press release
kENUP Foundation has presented €100,000 donation into Malta’s COVID-19 R&D Fund. The Fund is managed jointly by the Malta Council for Science and Technology (MCST) and Malta Enterprise with the support of the Ministry for Finance and Financial Services, and the Ministry for the Economy, Investment & Small Businesses. The Malta fund will see €5.3M funnelled into developing innovative and improved scientific and technological approaches to the challenges raised by COVID-19 and future pandemics. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200801005005/en/ Boosting Investment in R&I: €100,000 donation by kENUP Foundation to Malta’s COVID-19 R&D Fund (Photo: Business Wire) kENUP, a Malta-based not-for-profit global partnership in innovation, promotes research-based innovation for Europe with public and societal benefit. Holm Keller, Chairman of kENUP Foundation said, “We are very grateful to the Maltese Government for the init
Dole Unveils Integrated Strategy Against Banana Disease31.7.2020 20:32:00 EEST | Press release
Dole Food Company today shared the company’s most recent update on its efforts to combat Fusarium Tropical Race 4 (TR4), a plant disease that poses an existential threat to bananas, a major staple crop for much of the world. Since the discovery of TR4 in northern Colombia one year ago, Dole swiftly ramped-up its TR4 response plan, implementing site-specific TR4 prevention activities throughout Latin America in coordination with local authorities and international experts to contain and prevent spread. A three-year containment program was immediately implemented in 2019 to ensure biosecurity protocols in every Dole banana farm, as well as those of Dole’s independent suppliers. Those protocols build upon best practices implemented in the banana producing countries where the disease has been successfully contained and are continually reviewed and strengthened per site—based upon the farm layout and location—to maximize the effectiveness of the risk-based mitigation plan. Dole also continu
Systemic Risk Council Issues Comments to Financial Stability Board31.7.2020 18:50:00 EEST | Press release
Today, the Systemic Risk Council (SRC) issued notification of its comments to the Financial Stability Board (FSB) concerning the FSB’s proposed guidance on the resolution of central-counterparty clearing houses (CCPs). The Systemic Risk Council (SRC) considers that the proposed guidance is not fit for purpose as it currently stands. The full text of the comments can be seen here. For further information contact David Evanson at email@example.com or 215.460.8139 or Bristol Voss at firstname.lastname@example.org or 917.817.0888. About The Systemic Risk Council The Systemic Risk Council (SRC or Council) is a private sector, non-partisan body of former government officials and financial and legal experts committed to addressing regulatory and structural issues relating to global systemic risk, with a particular focus on the United States and Europe. It has been formed to provide a strong, independent voice for reforms that are necessary to protect the public from financial instability. T
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.Visit our pressroom