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Global index compiler MSCI begins process to lift Chinese stocks’ weighting in benchmark gauges

Global index compiler MSCI has taken the first step to increase the representation of Chinese shares in its benchmark gauges as part of a plan to quadruple the stocks’ weighting by November.The weighting of mainland-traded shares in the MSCI Emerging Markets Index will double starting on Tuesday, with the inclusion factor, or adjusted free-float market cap, lifted to 10 per cent from 5 per cent, MSCI said in a media release.Meanwhile, a raft of big companies on the ChiNext board hosting growth… Source link

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Global index compiler MSCI plans to increase weighting of Chinese stocks in its global benchmarks

Global index compiler MSCI said on Thursday it will sharply increase the representation of Chinese stocks in its global benchmarks.The inclusion factor of yuan-traded A shares will be raised to 20 per cent from the current 5 per cent in MSCI’s indexes in three steps, the New York-based index compiler said in a statement, with the full increase in effect by November.“On completion of this three-step implementation,” the indexer said, “there will be 253 Large and 168 Mid Cap China A shares,… Source link

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Benchmark compiler Hang Seng Indexes adds tool maker Techtronic to gauge, ejects China Resources Power

Hong Kong-based maker of Hoover vacuum cleaners and Milwaukee power tools Techtronic Industries will become a constituent stock of the benchmark Hang Seng gauge on March 11, compiler Hang Seng Indexes said on Friday as part of its quarterly review.Techtronic replaces China Resources Power Holdings, and the total number of the index will remain at 50.Founded in 1985 by Horst Pudwill, the company has been listed on the local bourse since 1990. It produces a lot of electronic equipment for the… Source link

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Index compiler MSCI’s inclusion of Chinese large caps boosts international investors’ net buying of A shares to record US$45b in 2018

International investors’ net buying of A shares via the Hong Kong northbound stock connect schemes last year rose 50 per cent to a record US$44.7 billion after mainland listed companies were included in the MSCI indices, according to a BNP Paribas report on Thursday. The northbound trading via the Shanghai and Shenzhen stock links also accounted for between 5 to 10 per cent of the daily A-share turnover in 2018, compared to just one per cent at the beginning of 2017. The US-based equity index compiler MSCI last June included…

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Global index compiler MSCI considers quadrupling Chinese stocks’ weightings in its benchmark gauges

MSCI is considering raising the weighting of Chinese stocks in its benchmark indexes four fold and adding small-cap companies for the first time. The US-based index compiler will immediately start a consultation with global investors, and the inclusion factor of yuan-traded A shares may increase to 20 per cent from 5 per cent, MSCI said in a statement on Wednesday. Implementation will be carried out in two phases, with the weighting increasing by 7.5 per cent each during the May and August review process next year. The final result of…

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