MSCI Inc. has linked up with GF International Investment Management Ltd. in launching an exchange-traded fund tracking the US-based index company’s China-focused index, the Hong Kong Economic Journal reported on Monday.
The launch came despite uncertainties in a plan to include mainland-listed stocks on the MSCI emerging market index.
Rene Veerman, MSCI managing director and head of Hong Kong and Taiwan, said consultations are continuing on the inclusion of A shares in its emerging market index.
Veerman, however, refused to comment on whether the recent market slump and the Chinese government’s intervention in the stock market would have any adverse impact on the plan.
The new ETF, which will debut on Wednesday, tracks the performance of the MSCI China A International Index that was launched in June last year.
The index has 369 constituents, with financial, industrial and consumer discretionary stocks having the highest weightings at 33.07 percent, 21.93 percent and 9.11 percent, respectively.
The ETF is the first of its kind in Asia tracking the MSCI index, although a few funds in Europe and the United States are also pegged to it, Veerman said.
China’s A-share market, being one of the largest in the world, deserves the attention of fund managers, Veerman said.
He noted, however, that foreign participation in the market is only at 2 percent at the moment.
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