MSCI previously chose not to include Shanghai and Shenzhen listed companies or Chinese A-shares to its benchmark Emerging Markets Index last summer after many expressed concerns over their ability to acquire and sell mainland shares.
The new inclusion proposal would allocate 1.1% of MSCI’s global EM index to mainland-listed Chinese shares.
SEE MORE: The ETFs Affected By MSCI’s China Change
“While active investors welcome precision in implementation, passive investors may favor an integrated emerging markets allocation to capture the beta efficiently and precisely. An integrated and consistent benchmarking framework – without artificial divisions – provides a neutral starting point for expressing investment views,” adds MSCI.
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VanEck Vectors ChinaAMC SME-ChiNext ETF (NYSEArca: PEK)