The provider of popular indices, MSCI Inc, will add securities of 234 Chinese companies, traded on mainland stock exchanges and denominated in yuan, to their indices on June 1.
A share of stocks of the companies from the local Chinese listing "A" in the MSCI China Index will amount to 1.26%, in the MSCI Emerging Markets Index – to 0.39%, MSCI said, publishing results of the next semi-annual rebalancing of the indices.
Currently, calculation of the MSCI China index includes only shares of Chinese companies traded on foreign exchanges.
It will attract billions of dollars to the Chinese stock market, which is very important, since it has been among the weakest this year.
Since the beginning of the year, stock indices of Shanghai Composite fell by 4% because of fears of "trade war" between the United States and China.
The company reported that its decision received broad support among international institutional investors and was primarily a result of the PRC authorities’ efforts to improve accessibility of the Chinese market.
