Stock market index provider MSCI said it will continue the second phase of partial inclusion of Chinese A shares in the MSCI Emerging Markets Index and other indexes, The Paper reported.
The inclusion factor of existing A shares will be increased from 2.5% to 5%.
Ten more A shares including China Shenhua Energy, China Unicom and China’s second-largest telecom equipment maker ZTE, will be added as part of the most recent quarterly index review, taking the total number of A shares in the MSCI China Index to 236.
Meanwhile, 13 additions will also be added to the China All Shares Index.
The new inclusion of A shares is expected to bring further capital injections into the Chinese market. According to Xie Zhengyu, managing director of MSCI, this will bring about $US22 billion in capital inflow to the A-share market.
The changes will take effect at the end of August.