The index provider announced the shares will be included in its Emerging Markets Index and the MSCI ACWI Index from June next year.
MSCI will add 222 China A large cap stocks to the MSCI Emerging Market Index, representing about 0.73% of the total. It has estimated initial inflows of $1.5bn.
It said the decision had been made after receiving broad support from international investors following the success of the Hong Kong and the Shanghai and Shenzhen Stock Connect programmes, and the loosening of restrictions to creating index vehicles by local Chinese stock exchanges.
Remy Briand, managing director and chairman of the Index Policy Committee at MSCI, said the expansion of Stock Connect had been a “game changer” for the decision.
He added: “International investors have embraced the positive changes in the accessibility of the China A-shares market over the last few years and now all conditions are set for MSCI to proceed with the first step of the inclusion.”
