On November 8, the first batch of 4 MSCI China A50sETFThe listing on the same day provides overseas investors with new A-share investment targets based on the interconnection mechanism, which will help overseas funds to accelerate the deployment of high-quality leaders in various A-share industries.
Internationalization of the first batch of MSCI China A50 ETF listing goes further
On November 8, four MSCI China A50 Connectivity Index ETF products will be listed on the same day, and a total of 26.7 billion copies of 330,000 holders will usher in listing transactions.This means that another product with futures and current linkages in the whole market was born, and it will become a public offering this year.fundAnother landmark event in the ETF market.
How do you view the background and significance of the launch of MSCI China A50 Interconnection Index Futures?
according toHong Kong Stock ExchangeYao Jiaren, managing director and co-head of marketing, introduced that with the continuous activity of two-way transactions on the interconnection, the market’s demand for interconnection-related products and risk management tools is increasing. Customized index, constituent stocks can passShanghai-Shenzhen-Hong Kong Stock ConnectTrading.
October 18,Hong Kong Stock ExchangeIn cooperation with MSCI, the first A-share index futures MSCI China A50 Interconnected Index Futures was launched, providing international investors with an important tool to allocate China and manage A-share risks. Yao Jiaren believes that the launch of the stock index futures will help further Attract overseas long-term capital to allocate A shares, drive more international investors’ demand for mainland Chinese stocks, and promote the continuous opening and internationalization of China’s capital market.
From the perspective of index characteristics, MSCI A50 is different from similar broad-based indexes. It focuses on “industry neutrality”. It gathers leaders from 11 industries and has a balanced configuration. At the same time, it represents China’s new economic development. The historical return is eye-catching and overall The volatility is very small, and the distribution with overseas investors is very even. Wu Jiaqing, Managing Director of MSCI and Chairman of the Greater China Operation Decision Committee, said: “We believe that this index is very attractive to domestic and foreign investors. The cooperation of the fund is of great innovative significance.”
MSCI China A50 “Good but not expensive”
How to include leading stocks through MSCI China A50 Connectivity Index ETF with one click?
According to CFA Xu Shuo, vice president of MSCI Asia Pacific Equity Research, the MSCI China A50 Connectivity Index came into being. Specifically, the index has the following characteristics: The index compiled based on the interconnected stock pool meets the requirements of investability and liquidity, and is a very usable index; the constituent stocks are all from the large and super large plates, and they are liquid. Sex is very abundant; the stock selection strategy of at least two stocks in each sector is very representative; considering the weight adjustment between industry sectors, the entire index can track the entire broad-based market very well.
The proposed fund manager of China Amoy A50ETF believes that the leading effect of the A-share market will be more prominent in the future, and the MSCI underlying index covers leading companies in various industries in the industry, and has strong market representation and competitiveness. It can be said that Ning Mao is in hand, gathering “high-achieving students”.
Compared with the MSCI major global market indexes, the MSCI China A50 Connectivity Index has a lower valuation, but a higher return on equity (ROE). The underlying index has both valuation and yield advantages and is “good but not expensive.” At the same time, the MSCI China A50 Connectivity Index is also an index that characterizes the trend of foreign investment, and has a high degree of compatibility with northbound funds.
In addition, on November 7, the MSCI official website announced that the results of the November 2021 MSCI semi-annual index review will be announced after 23:00, November 11, Central European Time (after 6:00, November 12, Beijing Time). The review involved MSCI Global Standard Index, MSCI Global Small Cap and Micro Cap Index, MSCI Global Value Growth Index, MSCI Frontier Market Index, MSCI Frontier Market Small Cap Index, and MSCI China A Share Onshore Index and MSCI China All Stock Index Wait. All changes will take effect after the close of business on November 30, 2021. Generally speaking, the semi-annual review is the review with a larger adjustment range in MSCI.
Overseas funds accelerate the layout of leading stocks
At present, my country continues to promote the opening of its capital market, the internationalization of A-shares continues to advance, and global investors are paying more and more attention to Chinese assets. In this context, the launch of MSCI A50, a China A-share index based on interconnection, is of great significance. This move provides overseas investors with new A-share investment targets and risk management tools based on the interconnection mechanism. The convenience of stocks is further improved.
The reporter of “Investment Express” noted that the MSCI A50 index serves as the reference benchmark for A-share asset allocation. Index-based ETFs and related derivatives will form a complete ecosystem and promote the positive interaction between the A-share market and global professional investment institutions. For example, Hong Kong launched the MSCIA50 index stock index futures on October 18, which allows foreign investors to invest in A shares through the interconnection mechanism while making it more convenient to use index futures for risk management, which will further enhance foreign institutional investors and international capital. The enthusiasm for entering A shares will also increase the degree of opening up and international influence of A shares.
The MSCI A50 Index is not only good for overseas institutions to invest in A shares, it is also an important investment opportunity for domestic investors.China Universal FundWu Zhenxiang, deputy director of the Index and Quantitative Investment Department and fund manager, believes that “under the general trend of continued international capital inflows and institutionalization of domestic investment, the A-share market will usher in very good long-term investment opportunities. Investors can track its Index product-MSCI China A50 Interconnection ETF, to realize the grasp of the overall investment opportunities in the A-share market.”
It can be seen that as China’s capital market continues to open up to the outside world, the process of A-share internationalization continues to deepen, and global investors’ attention to Chinese assets is also increasing. In this context, the MSCI China A50 Connectivity Index Futures and the MSCI China A50 ETF are launched, providing overseas investors with new A-share investment targets and risk management tools based on the interconnection mechanism, which will help accelerate the deployment of overseas funds in A-shares High-quality leaders in various industries.
(Source: Investment Express)
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