MSCI’s inclusion of A-shares in the emerging markets index would be gradual, starting with 5% in 2015, according to the index provider. That would boost China’s weight in the index to 19.9% from the current level of 17.7% and if the country decides to fully liberalize its financial markets, it could account for 27.7% of the MSCI Emerging Markets Index. [Move to EM Index Could Lift A-Shares ETFs]
The MSCI Emerging Markets Index, to which $1.3 trillion in global assets are benchmarked, is the underlying index for the iShares MSCI Emerging Markets ETF (NYSEArca: EEM). EEM is the second-largest emerging markets ETF by assets.
Earlier this month it was reported that Chinese regulators are mulling plans to permit cross-market investing between Shanghai and Hong Kong, but some investors view that effort as not doing enough to enhance the accessibility of A-shares equities. [Cross Market Plans Could Lift A-Shares ETFs]
db X-trackers Harvest CSI 300 China A-Shares Fund