February 28, 2019 / 10:33 PM / in 4 months

MSCI to increase weighting of China A-shares in three-step process

NEW YORK, Feb 28 (Reuters) - Stock index provider MSCI said on Thursday it will increase the inclusion factor of China A-shares in its benchmark indexes to 20 percent by November in a three-step process.

The inclusion factor will increase to 10 percent from 5 percent next May, will jump to 15 percent in August and will reach 20 percent in November, MSCI said.

Also in November, MSCI will add Chinese mid-cap A-shares to its indexes with a 20 percent inclusion factor.

After implementation, the MSCI emerging market index will include 253 large-cap and 168 mid-cap China A-shares, totaling 3.3 percent pro-forma weighting of the widely-followed benchmark.

Brendan Ahern, chief investment officer at Krane Funds Advisors, which manages the KraneShares Bosera MSCI China A ETF , said “I am almost crying.”

“We have built the (ETF) in anticipation of this event.”

KBA is up 24.6 percent so far this year. (Reporting by Rodrigo Campos and Jennifer Ablan Editing by Alistair Bell)

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