Furthermore, MSCI intends to include stocks listed on Shenzhen’s ChiNext, a Nasdaq-esque board heavy with tech firms, eligible for the provider’s bencharmk index starting in May. Midsize mainland stocks could also be included in 2020.
FTSE Russell is also cogitating over whether to classify China A-shares as “secondary emerging,” which would put the shares into its own flagship emerging market index.
As the demand for Chinese mainland stocks rises, the move for broader inclusion could be beneficial to an array of exchange traded funds that cover the Chinese A-shares market, including the VanEck Vectors ChinaAMC SME-ChiNext ETF (NYSEArca: PEK), VanEck Vectors ChinaAMC CSI 300 ETF (NYSEArca: CNXT), iShares MSCI China A ETF (BATS: CNYA) and db Xtrackers Harvest CSI 300 China A-Shares ETF (NYSEArca: ASHR). These ETFs track China-listed company stocks on the Shanghai and Shenzhen Stock Exchanges.
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