China A-shares

Mercer Insights


China A-shares


THE IMPLICATIONS OF PROSPECTIVE INCLUSION IN GLOBAL INDICES


img-FL000111b-1000x332


China A-shares comprise stocks listed on the domestic Chinese (Shanghai and Shenzhen) stock exchanges, which to date have not been included in the major global equity indices of the large index providers such as MSCI and FTSE Russell (FTSE). However, this status has come under increased scrutiny over the past 12-24 months with the index providers now contemplating the inclusion of China A-shares in global indices during their respective formal annual review processes. In their most recent reviews (FTSE: September 2014, MSCI: June 2015), neither MSCI nor FTSE decided to include China A-shares in their respective global indices, but expectation is building from a number of market participants that this is likely to change in the near term. In this paper we discuss the reasons for this and the implications for investors.

 

Complete Form Below to Download PDF*Required