A-share inclusion tipped to boost long-term stocks

A-sharesThe inclusion of Chinese mainland-listed equities, A-shares, in the MSCI Emerging Markets index ought to benefit investors with exposure to long-term development trends. The prediction, by a fund manager at Fidelity International, assumes the inclusion will increase institutional investor participation in China’s stock market. “With the Chinese A-share market primarily dominated by retail investors currently, market movements tend to be driven by short-term market noise and herding behaviour,” said Raymond Ma. “Institutional investors tend to be more focused on finding long-term winners.” MSCI’s inclusion of A-shares will oblige passive funds that track the index to buy mainland-listed equities. Many active managers are expected to follow suit. The two-step process of adding around 234 A-shares to the MSCI index will take place in June and September. ©2018 funds global asia

Executive Interviews

INTERVIEW: Operational challenges

Jun 09, 2018

Caroline Higgins of Northern Trust tells George Mitton about A-share inclusion, ETF Connect and why Cayman funds predominate in the region.

INTERVIEW: Making a name

Apr 18, 2018

Formed by a merger in 2012, Old Mutual Global Investors was little-known in Asia. Carol Wong, managing director for Asia-Pacific, is changing that. She talks to George Mitton.


HONG KONG ROUNDTABLE: a long-term project

Jun 09, 2018

Our panel discussed robo-advisers, ETF Connect, and why the mutual recognition of funds (MRF) scheme will take time to develop. Chaired by George Mitton in Hong Kong.

SINGAPORE ROUNDTABLE: Small nation, big ambitions

Apr 18, 2018

Our cross-industry panel discussed fund passporting, robo-advisers and the potential of a new investment structure, the S-Vacc. Chaired by George Mitton in Singapore.