Amundi Asset Management

2019 Top 400 ranking: 9http://www.amundi.com

Request More Information

Amundi

MSCI China A-share inclusion along the way of China’s transition to quality growth

• In June 2017, MSCI announced the partial inclusion of China’s domestically traded, yuan-denominated stocks, or so-called A-shares to MSCI China, MSCI Emerging Markets (EM), and MSCI All Country indices, which is to be implemented from June 2018.

• A-share inclusion was previously rejected in any indices due to limited market accessibility to global investors and restrictions on repatriation of capital, among others things. Then, the Chinese authority addressed these issues gradually, in particular by launching the Stock Connect schemes.

• At 5% inclusion factor,2China A-Shares will account for roughly 0.8% of the MSCI EM Index, 1.1% of the MSCI Asia Index, and 0.1% of the MSCI AC World Index. The inclusion of China A-shares this year will take effect through a two-step process of 2.5% each, effective on June 1, 2018 and September 3, 2018.

• While inclusion has symbolic significance, there should be limited financial implications for other Emerging Markets, at least in the short-term.

• We are looking at the opportunities that the A-share market presents, with a clear preference for sticking to strict valuation criteria and good corporate governance. However, A-shares trade at a large premium over H-shares, so we currently prefer the latter in the Chinese market.

Read the complete white paper at the link beneath Related Links

Head Office
90, boulevard Pasteur
Paris
75015
France
Company website:
http://www.amundi.com
Year Founded:
2010
No. of investment offices worldwide:
6

Browse this manager's…

What’s new

  • Trade War Escalation And Impact On World Trade And Economic Growth

    Trade War Escalation And Impact On World Trade And Economic Growth

    White papersWed, 18 Sep 2019

    Trade tensions re-escalated during the summer. Starting on 1 September, the US Administration introduced new tariffs and China retaliated simultaneously. More tariffs are likely from the US side, including an increase in tariffs already in place from 25% to 30% and new tariffs on the last tranche of imported goods from China. Concerning extra-tariffs measures, in August the temporary licences granted to US companies to operate with Huawei were extended upon their expiration but, so ...

  • Risk Factors, Macroeconomic Context And Forecasts - September 2019

    Risk Factors, Macroeconomic Context And Forecasts - September 2019

    White papersWed, 18 Sep 2019

    Financial markets have been rattled in the past weeks over escalating trade war between the US and China as both imposed tariffs and counter-tariffs on imports. Idiosyncratic risks stories in countries such as Argentina resurfaced, the UK’s parliament was suspended over Brexit chaos and Italy witnessed a political crisis of its own, although a government seems in sight now.

  • Global Investment Views - September 2019

    Global Investment Views - September 2019

    White papersWed, 4 Sep 2019

    Financial markets have been rattled in the past weeks over escalating trade war between the US and China as both imposed tariffs and counter-tariffs on imports. Idiosyncratic risks stories in countries such as Argentina resurfaced, the UK’s parliament was suspended over Brexit chaos and Italy witnessed a political crisis of its own, although a government seems in sight now. 

  • domestic focus to exploit emerging markets equity opportunities

    Domestic focus to exploit Emerging Markets equity opportunities

    White papersSun, 1 Sep 2019

    The emerging markets (EM) universe has experienced significant changes in the last decade with the further addition of investible countries (i.e. China A shares in 2018).

  • Fed And Ecb, Bridging From A “Mid-Cycle Adjustment” To An “Impactful And Significant” Package.

    White papersTue, 27 Aug 2019

    The minutes from the latest ECB meeting suggest that the ECB is likely to proceed with a full set of measures in September, confirming not only the indications from President Draghi following the meeting but also the very latest statements by Olly Rehn, calling for the need for an “impactful and significant” package.

Search all our content