BEIJING, Aug. 8 (Xinhua) -- The MSCI announced Thursday that it will raise the inclusion factor of all large-cap China A-shares in the MSCI indexes from the current 10 percent to 15 percent, effective after market close on Aug. 27, according to financial information provider Wind Info.
Hiking the inclusion factor by 5 percentage points is likely to lead to around 22.7 billion dollars of incremental capital to the market, according to estimates from China International Capital Corporation Limited.
The inclusion will bring the weighting of China A-shares in the MSCI China index and MSCI emerging market index to 7.79 percent and 2.46 percent, respectively.
The move followed a decision in March that it will increase the inclusion factor of A-shares to 20 percent in a three-step process in May, August and November, each time upping the representation of Chinese large-cap stocks by 5 percentage points.
The MSCI also decided to take China's science and technology innovation board into consideration and provide a further eligibility assessment before the semi-annual index review in November.
Following global index provider MSCI's move, S&P Dow Jones Indices is also planning to include Chinese A-shares in their global benchmarks.
