CSOP, one of the largest China A ETF providers gobally is bringing the solution for full replication of MSCI's progressive inclusion of China A shares.
HONG KONG (PRWEB) May 08, 2018
To better align with the steps of China A shares’ inclusion into MSCI Emerging Markets index, CSOP MSCI China A International Index ETF will change to CSOP MSCI China A inclusion index ETF (stock code: 83149/3149) with underlying index changed from MSCI China A international Index to MSCI China A Inclusion Index, effective from May 3, 2018. Aside from the underlying index change, other factors of the ETF will keep unchanged with NAV level of RMB 11 per share (HKD 13.4), trading lot of 200 shares and management fee at 0.79% as at May 2, 2018.
MSCI China A Inclusion Index is designed to track the progressive partial inclusions of China A shares into the MSCI Emerging Markets Index over time. The index is designed for global investors accessing the China A shares market using the stock connect framework and is calculated using China A stock connect listings based on the offshore RMB exchange rate. The index will serve to reflect further inclusion of China A shares of the MSCI EM Index with the progressive opening up of China A-shares.
MSCI announced to include around 230 China A Large Cap shares to MSCI Emerging Markets Index within 2018. And the two-phase rebalancing process will be implemented in May and August. The inclusion of China A shares to MSCI Emerging Markets Index is estimated to bring initial $20 billion global capital inflows to China A shares in 2018, which account for 1.3% of more than $1.6 trillion total assets benchmarked to MSCI Emerging Markets Index. Upon full inclusion, total $300 billion capital was estimated to flow into China A shares with 18% weighting in MSCI Emerging Markets Index.
CSOP, the largest RMB Qualified Foreign Institutional Investor ("RQFII") quota holder and the manager of the largest RQFII China A shares ETF – CSOP FTSE China A50 ETF, is confident that the newly-modified CSOP MSCI China A Inclusion Index ETF will be a supplementary investment tool to CSOP China A50 ETF (stock code: 2822/82822) for investors who are looking to invest in China. Driven by the occasion of MSCI’s inclusion of China A shares and leveraged by CSOP’s extensive ETF distribution force, CSOP MSCI China A Inclusion Index ETF has already got considerable investment demand from global institutional investors. Based on the initial demand, CSOP will continue to work on the ETF liquidity improvement and ecosystem establishment, enabling more investors to get access to China A shares with the full replication of MSCI’s inclusion steps.