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Free Access*** MSCI Inclusion Among Factors Supporting...>
CHINA: *** MSCI Inclusion Among Factors Supporting A Shares Yesterday
- The relevant MSCI indices lifted their China A-share inclusion factor to 15%
from 10% after yesterday's cash equity close. This move came after an
announcement that laid out the increase earlier this month.
- Estimates suggest that the move will result in ~4.5bn worth of passive inflows
filtering into A-shares.
- Positive Chinese Industrial profits data and Monday's Wall St. rally also
helped Chinese equities on the day.
- However, the most notable takeaway was that foreigners lodged the largest
round of net A-share buying via the Hong Kong-Shanghai & Hong-Kong Shenzhen
stock connect programmes since early December, with CNY 11.27bn worth of inflows
into A-shares evident, and likely linked to the adjustment in the MSCI inclusion
factor outlined above.
- Chart: https://emedia.marketnews.com/AShareFlows270819.png
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.