Mainland China shares make it to New York-based MSCI

The increase, however, will come at the cost of other markets

New York-based MSCI on Tuesday agreed to include the so-called China-A shares in its global indices. About 234 large-cap stocks listed in mainland China will be partially included in the MSCI global and regional indices from June 1.

Initially, the weight of the shares in the MSCI Emerging Markets (EM) Index will be only 0.39 per cent because of the 2.5 per cent partial inclusion factor. In September, this will increase to 0.78 per cent as MSCI increases the inclusion factor. 

With time, given the huge size of the Chinese market, the shares’ weight in the MSCI EM index, tracked