A-share inclusion to spur China's development

Shenzhen stock marketThe addition of about 230 mainland-listed China A-shares to the MSCI Emerging Markets index will accelerate the internationalisation of China's capital markets. The managing director of China Post Global, who made the claim, also described China as “a long-term megatrend”. “The MSCI inclusion is a further concrete step in the ongoing opening of the Chinese stock market and reflects the strong demand from international investors as well as the greatly-improved access,” said Danny Dolan. MSCI will add the shares to the index in June and September. Passive funds that track the index will be obliged to take holdings in the included shares. Active fund managers that use the index as a benchmark may choose to do the same. “It is worth noting that volatility and leverage are still a concern for many international investors,” added Dolan. “We believe a selective approach such as smart beta can mitigate both concerns considerably.” ©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.