MSCI raises index weighting for China stocks

The decision by global index provider MSCI to raise the inclusion factor of all large-cap China A-shares in the MSCI indexes from the current 5 percent to 10 percent took effect after the market closed on Tuesday.

[File photo: IC]

Driven by the index inclusion, northbound trading of the Stock Connect programs between the Shanghai and Hong Kong exchanges, and the Shenzhen and Hong Kong exchanges, saw net capital inflow totaling 7.49 billion yuan on Tuesday, reversing the outflow trend of the past several days.

The index provider said in March that it would further increase the inclusion factor of A-shares to 20 percent in August and November, each time upping the representation of China's large-cap stocks by 5 percentage points.

(Story includes material sourced from Xinhua.)