MSCI Inc a leading provider of research-based indexes and analytics, announced the results of the February 2022 Quarterly Index Review for the MSCI Equity Indexes, including the changes in the MSCI China A Onshore indexes and the MSCI China All Shares Indexes. All changes will be implemented as of the close of February 28, 2022
There will be four additions to and three deletions from the MSCI China A Onshore Indexes. The three largest additions to the MSCI China A Onshore Indexes will be China Mobile A, CNGR Advanced Material Co A and Zhejiang Orient Gene Biotech A. There will be two additions to and three deletions from the MSCI China A Onshore Small Cap Index.
There will be five additions to and five deletions from the MSCI China All Shares Indexes. The three largest additions to the MSCI China All Shares Indexes will be Gree Electric Appliances A, CNGR Advanced Material Co A and Lufax Holding ADR. There will be four additions to and three deletions from the MSCI China All Shares Small Cap Index.
China Mobile hit its daily trading limit on Wednesday with its total market value exceeding 1.4 trillion yuan ($220 billion), making it the fourth largest stock on China’s A-share market, according to Wind data. China Mobile was down 0.37 percent on Thursday morning trading.
The adjustment of MSCI China index is expected to attract a large number of overseas funds, betting on Chinese assets.
Bridgewater Associates, the world’s largest hedge fund, said at the end of January that it had more than 34 billion yuan in assets in its China funds issued overseas, and is ramping up its allocation of yuan assets.
Song Yu, chief China economist at BlackRock also said that BlackRock is quite bullish on Chinese assets, equities and government bonds, suggesting international investors increase their allocation to Chinese assets.
Consumers experience 5G mobile phones at a business hall of China Mobile Beijing Branch in Beijing, capital of China, Oct. 31, 2019. (Xinhua/Shen Bohan)
