S&P Dow Jones Indices will add A-shares to its Dow Jones Emerging Markets Index, as reported by Yicai Global on December 6. The inclusion will apply to at least 1,440 eligible A-shares on the Shanghai-Shenzhen-Hong Kong Connect programs, based on a 25% inclusion factor, and will be in effect as of September 23, 2019. As a result, any investment fund and institutional investor benchmarked to the index will have to buy these Chinese shares.
A-share inclusion into regional and global indexes started to increase in the past two years, particularly with MSCI’s [MSCI:US] implementation in June this year. However, major indices only include overseas-listed Chinese firms such as Alibaba [B