MSCI have revealed the 234 mainland Chinese stocks – or A-shares – that they will be including in their indices from June, ahead of what is expected to be a major boost to global equities as foreign investors gain greater access to China’s markets.
The stocks cover a range of sectors including banks, real estate developers and consumer brands.
Although the list of companies makes up a small fraction of China’s total equities market, it is expected that more stocks will be added after the launch. As the Wall Street Journal reports, the first batch on June 1st will have a 0.4% weighting in MSCI’s Emerging Markets Index and a 1.3% weighting in the MSCI China Index, which currently only offers offshore-listed Chinese companies. MSCI said on Tuesday, however, that these weightings will double in September.
By opening up coveted A-shares to foreign capital, analysts believe up to $18 billion could flow into China’s stock markets.