Two CNNC A-shares to be included in MSCI index
Global index provider Morgan Stanley Capital International (MSCI) announced on May 15 the results of its May 2018 Semi-Annual Index Review and a list of China A-shares to be included in its Emerging Markets Index starting from June 1.
According to MSCI, a total of 234 China A-shares are to be included in MSCI’s Emerging Markets Index. Two A-shares from China National Nuclear Corporation (CNNC) are on the list, an important milestone for the group.
MSCI’s announcement indicates its confidence in China’s nuclear energy industry and CNNC’s leadership position in the energy industry. As the first batch of Chinese companies to be included in MSCI’s index, CNNC has become an important market index for the whole industry.
It is understood that $12.4 trillion of assets are tracking MSCI indexes globally, most of which are active funds. Henry A. Fernandez, CEO of MSCI, commented that the partial inclusion of China A shares in the MSCI index system will lead to initial capital flows of around $17 billion to $18 billion. The number may increase to $340 billion after the full inclusion in 7 to 10 years.