China Stocks Rally as MSCI Considers Lifting Index Weighting
- Change would see the stocks making up 2.8% of MXEF in 2019
- Chinese equities have struggled this year amid trade tussle
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China’s mainland stocks rose after MSCI Inc. said it’s considering increasing the weight of the shares in its global indexes from next year, as well as allowing in a raft of smaller tech companies.
The index compiler is proposing to lift a cap on free-float-adjusted market value to 20 percent from 5 percent for yuan-denominated stocks, according to a statement. That would occur in two stages in 2019. MSCI’s also looking to make equities listed on the tech-heavy ChiNext board eligible from next year, and mid-cap stocks from 2020, it said. FTSE Russell will announce its own plans for A-share inclusion on Thursday, people familiar said.