A recent heavy news is ferring in a circle of friends -
"MSCI announced that it will increase the existing China's large-cap A-share factor from 5% to 10%, and take effect after the market on May 28. According to previous planning, through the three-step process in May, August and November this year. "Strategy, the A-share factor will rise to 20%. At this meeting, MSCI also said that the final inclusion factor for A-shares in the MSCI index will rise to 100%.
Regarding this expansion, the streets and the streets are hotly debated. What issues are the most concerned about the passengers?
How much incremental funding is expected after this expansion?
MSCI will say that after the three-step completion, A shares will usher in $80 billion in incremental funding.CITIC SecuritiesIt is said that the overseas incremental funds from the second quarter of 2019 to the end of the year are expected to reach 524.1 billion yuan. JP Morgan Chase is more optimistic, plus the "into the rich" in June this year, it is estimated that from May 2019 to March 2020, a total of 150 billion US dollars will flow into A shares.
At the same time of the continuous inflow of overseas funds, it is the increase of foreign shareholding ratio and the increase of foreign pricing power. Some market style characteristics of A shares will be closer to the developed capital market. The constituent stocks that have been included are more popular with foreign investors, and there are significant investment opportunities behind them.
How to pan for gold in MSCI expansion?
MSCI index investment has been very hot, but there are many indexes related to A shares, please be sure to look right -
MSCI ChinaThe A-Share International Index is a standard index mainly for QFII/RQDII and other international investors to invest in China A-shares. It fully reflects the current situation that has been included and will be included. It is the standard version of MSCI for A-shares.
The index fully considers the relevant regulations and characteristics of foreign shareholding in the preparation of the index. It is more investable for international investors and is an important benchmark and foundation index for international investors to invest in the A-share market.
As the longest fund company in China and MSCI, Huaan Fund has rich experience in MSCI index investment. In 2018, ETFs and their linked funds that tracked the MSCI China A International Index were launched to provide investors with quality and stable MSCI asset allocation tools.
Huaan MSCIChina A-Share International ETF (512860), suitable for on-market investors with stock accounts, low cost, transparent investment, suitable for long-term holding, band operation, arbitrage trading.
Huaan MSCI ChinaA-share international ETF joint fund (Class A: 005747; Class C: 005748), suitable for over-the-counter investors to purchase, low investment threshold, and can participate in investment by fixed investment, reducing investment fluctuations.
The theme of entering the motorcycle has been hot for a long time. Is it still too late to get on the train?
Guotai JunanIn the research report, “Emerging capital market countries usually adopt a gradual open model, gradually moving from an indirect open model to a restricted direct open, and ultimately directly and completely open.” From initial inclusion to full inclusion in MSCI, It has been used for nearly 9 years with the experience of the Chinese Taiwan market; it has been used for more than 6 years with the experience of the Korean market.
From 2.5% to 10%, with the gradual increase of the proportion of MSCI, the overseas funds are like “small tricks” into A shares. This process is not very fast and not slow. The expansion in May has received much attention, but it is far from the end. There are only one investment opportunities for A-share internationalization, but this time the opportunity will span many years. There is still a long way to go from 10% to 100%, and it is not too late to enter.
Risk Warning: The fund manager company does not guarantee that the fund will be profitable or guarantee the minimum income. The past performance of the fund cannot predict future earnings. For details, please read the fund's fund contract, prospectus and fund share offering announcement. Investment is risky and the views in the text do not represent any investment advice.