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The A Industry Is Surprised By The Decision Of MSCI To Enter The Emerging Market Index.

2014/6/11 11:34:00 34

A Share Emerging Market Index Market Quotation

The investment quota of QFII (qualified overseas institutional investor) and RQFII (RMB qualified foreign institutional investor) is the reason why A shares failed to be selected this year. Remy Briand, head of MSCI international research department, said that international investors generally support A shares in public consultation, but the amount available for them is still too limited to include A shares in the mainstream index. 
P, however, MSCI also announced that it will launch the MSCI China A shares international index from 27 this month. The index uses the MSCI global investment market index calculation method, and international investors can select A shares into their global benchmarks through QFII and RQFII lines. 
 "over the past two years, many international investors have begun to invest in A shares. The QFII quota is also growing significantly. The A share market is constantly opening up. We will pay close attention to the development of investment opening channels including Shanghai and Hong Kong." He added. 
 Karin, partner of Oriental capital East Capital (Karine Hirn) expressed surprise at the decision of MSCI emerging market not to be included in A shares. She said frankly that the exposure of Eastern European investors in the past to China's market view is negative, but this view is changing. In May, the performance of the Group China fund exceeded ASEAN Fund for the first time. 
 eastern capital is currently investing through QFII quota < a href= "//www.sjfzxm.com/news/index_c.asp" > A shares < /a > A share fund assets management scale is about 120 million US dollars. Xi Karin said that the current QFII total size is only about 1.5% of the A share market, hoping that this proportion can be improved in the future. 
 she believes that even if the a href= "//www.sjfzxm.com/news/index_c.asp" > MSCI < /a > announces the decision to be included in A shares, the market performance will not rebound immediately, but in the long run, more investors will be concerned about China's stock market, and the unique industry or theme in the A share market will help international investors to enrich their asset allocation. 
 Shen Jialin, manager of Hongkong Research Department of Yifeng finance online fund distribution platform (Fundsupermart, FSM), at a press conference held in June 10th, said that A share investment still faces capital controls, and some institutional investors borrow QFII and RQFII quota to increase their costs. If MSCI is included in A shares, it will not exclude ETF from turning to other indices. 
 MSCI < a href= "//www.sjfzxm.com/news/index_c.asp" > emerging market index < /a > currently covers 823 stocks in 23 emerging markets, accounting for 18.6% of China's market share, mainly for Hong Kong stocks and B shares. In 2013, the MSCI emerging market index fell 4.98%, 
 track the index ETF including the ETF, BMO MSCI emerging market index ETF, ComStage MSCI emerging market index ETF, CS MSCI emerging market index index, the Deutsche Bank emerging market, the HSBC emerging market, the emerging market, the rising market, the emerging market, the UBS emerging market, etc. 
 mainland regulators have told the Caixin reporter that the Global Fund for tracking the MSCI index is huge. If the MSCI emerging market index is included in the A share, many passive funds will have to catch up, which will have a great impact. 
P, another index company FTSE also announced the launch of the global R/QFII Index Series in June 5th. Market participants can independently customize the index and use A shares as their global benchmark. The FTSE global stock index series has not yet been included in A shares. 
 "the market has different opinions on A shares. Investors can choose whether to join A shares in the investment benchmark and choose the weights of A shares in their global benchmarks." Xie Rukang, director of FTSE Asia, said to Caixin. 
 "we believe that A shares will become more and more likely to be incorporated into the FTSE Global Index Series in 5 years." The announcement pointed out that FTSE will consider whether A shares will be accepted again in the annual routine review of September this year. FTSE has incorporated the Chinese market into its wait-and-see list since 2005. 
 MSCI report indicates that due to the large scale of A shares and the expected regulatory reform of Shanghai and Hong Kong through the near future, MSCI will review whether it is included in A shares in the annual review in 2015. 
 "the mainland exchanges and the SFC are very active in bringing the A shares to the international index. Compared with the factors such as financial stability, the central bank seems to be less positive." Executives at the index company admitted that China's regulatory authorities could provide a clear timetable and roadmap for China's capital account liberalization.