MSCI Managing Director Wu Jiaqing: MSCI China A50 Connectivity Index adopts industry-neutral strategies to capture China’s economic growth opportunities

On November 8, following MSCI’s announcement on August 20 to launch China’s A50 Connectivity Index, four index-basedETFThe product is officially launched.

Wu Jiaqing, Chairman and Managing Director of MSCI Greater China Operation Decision Committee, said: “We are very pleased to see the market’s enthusiastic response to the launch of MSCI China A50 Connectivity Index-linked products. This confirms the further opening of the Chinese market. It reflects that an ecosystem of spot futures at home and abroad is being formed, which is a milestone for the development of the Chinese market.”

Wu Jiaqing believes that there are five main considerations for foreign investment in asset allocation: first, long-term historical performance; second, representing industry leaders; third, permeability and liquidity; fourth, representing the long-term development of the overall economy; fifth, ESG and Performance in terms of climate. The MSCI China A50 Connectivity Index adopts an industry-neutral strategy, tracking the 11 industries covered by the Global Industry Classification Standard (GICS), covering a wide range of industries, ensuring that there are no industry sector deviations, and reflecting the broad diversification of China’s economy Traits. Compared with the traditional market value weighting method, MSCI’s index compilation method can bring better representation and balance to investors, allowing investors to capture the growth opportunities of China’s economy. At the same time, the equilibrium design of the index can better reflect the orientation of the entire market, can become a benchmark for investors when making allocations, and help manage the risk of the investment portfolio.

Wu Jiaqing further stated that the launch of the MSCI China A50 Connectivity Index, as well as the futures and ETF products derived thereafter, will help fill the systemic gap in foreign investment in the A-share market, which is a milestone and also allows domestic individuals and institutions to invest. Participate in a healthier ecological environment that focuses on long-term investment and risk control, and plays a positive role in promoting the healthy, transparent, long-term, institutional and stable development of China’s capital market in the long term.

(Source: Securities Daily)

Article source: Securities Daily

Editor in charge: DF551

Original Title: Wu Jiaqing, Managing Director of MSCI: MSCI China A50 Connectivity Index adopts industry-neutral strategies to capture China’s economic growth opportunities