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May 13, 2021

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MSCI China Index to list STAR shares

Index compiler Morgan Stanley Capital International has announced the inclusion of five stocks listed on the SSE STAR Market in the MSCI China A Index.

The changes are to be implemented on May 27, which will be the first time STAR shares have been included in the MSCI’s flagship index series.

Previously, only some STAR shares that met the requirements of the MSCI GIMI compilation methodology were added to the company’s China All Share Index and China A Onshore Index.

Based on experience, the changes may lead to capital inflows to the Chinese mainland via Stock Connect schemes.

The STAR-listed firms are CanSino Biologics, China Railway Signal & Communication Corp, Montage Technology, Zhejiang HangKe Technology, and Raytron Technology.

According to the results of the May 2021 semi-annual index review for the MSCI Equity Indexes, the flagship MSCI China A Index will see 39 additions, including the five STAR shares, and 19 deletions.

The three largest additions to the MSCI Emerging Markets Index measured by full company market capitalization will be Rede Dor Sao Luiz listed in Brazil, and Ganfeng Lithium Co H and Ningxia Baofeng A, both from China.

The MSCI China A Onshore Index, meanwhile, will see 26 additions and 77 deletions. The three largest additions will be Ningxia Baofeng Energy A, Pharmaron Beijing A and Jiangsu Eastern A.

There will also be 200 additions to and 213 deletions from the MSCI China A Onshore Small Cap Index.

As for MSCI China All Shares Indexes, 60 securities are to be newly covered in it while 26 will be cut. The three largest additions will be Ganfeng Lithium Co H, Ningxia Baofeng Energy A and Pharmaron Beijing A. The MSCI China All Shares Small Cap Index will see 195 additions and 275 deletions.

“Since the launch of our flagship MSCI China and MSCI China A Indexes, we continue to develop innovative index solutions to help investors capture China’s growth potential in their portfolios,” said Doug Walls, APAC head of index products at MSCI.




 

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