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.


SINGAPORE ROUNDTABLE: Optimism versus caution

Oct 23, 2018

The impact of financial technology, developments in Asian passporting and the promise of new markets in Thailand were among the topics discussed by our panel. Chaired by George Mitton in Singapore.

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.