What does it mean for A shares to be included in the MSCI index?

You should be referring to the inclusion of A-shares in the MSCI index.

Let's start with MSCI.

Morgan Stanley Capital International (MSCI) is an international company that provides global indices and related derivative financial products.

Next, we will introduce the MSCI index.

MSCI Index refers to an index launched by Morgan Stanley to represent the world** market conditions, this index is widely used by investors, and investment professionals around the world, including portfolio managers, broker-dealers, exchanges, investment advisors, academics and financial**. MSCI indices are the most widely used investment targets among portfolio managers worldwide. MSCI estimates that more than 90% of institutional international equity assets in North America and Asia are indexed by MSCI indices.

According to Merrill Lynch's Gallup survey, about two-thirds of managers in continental Europe** use MSCI as an index provider. MSCI indices are also used as common targets and are licensed for the evaluation of index-related **, research and proprietary products. More than 1,400 clients worldwide use MSCI as their underlying clientele.

Once A-shares are included in MSCI, it will attract a lot of overseas funds, which is a good thing for A-shares. For China's financial market, it also has a certain significance, representing the gradual opening up of the domestic financial market.

MSCI is the abbreviation of MSCI, a well-known index compilation company in the United States, and the MSCI index is the benchmark index most used by DAO portfolio managers in the world.

The index is composed of a variety of indexes, and A-shares may also become a part of it in the future, which can be understood as the CSI 300 Index, which is composed of 300 stocks.

Benefits: 1. There is about tens of billions of dollars of liquidity support, which is equivalent to 60 billion yuan at the current exchange rate level.

2. Learn from historical experience: the inclusion of MSCI will generally have a certain increase, for example, India** was included in MSCI in 1994, India** was affected by this**35%, and in 1996, it was included in Taiwan and Hong Kong, with an index of **48% and 37% respectively; In 1997, it was included in Russia, and the annual increase was as high as 160%.

3. Market standardization, increased transparency, etc.

A few days ago, there was a big news in this financial circle. That's China's A** field. It was finally included in this MSCI index. What will be the impact on the A** market and investors?

An index compiled by Morgan Stanley International Capital (MSCI) that tracks the performance of the China concept**. The MSCI China Index Series consists of a series of national indices, composite indices, onshore and non-domestic indices, primarily targeting international and domestic investors in the Chinese market, including QDII and QFII licensees.

The MSCI China Index covers all segments of **, mid-cap and small-cap stocks.

The MSCI China Index Series includes:

The flagship MSCI China A-share index, the MSCI Greater China Index, provides a representative sample of the entire investment space in China, covering A-shares, H-shares, B-shares, red chips and private companies, as well as local stocks listed in Hong Kong; MSCI Golden Dragon A Index, which includes all China** types, Hong Kong** and Taiwan** MSCI China A IMI Indexes.

Recently, with the continuous entry of foreign capital, many ** have gradually marked a concept of MSCI, what does this concept mean? This may be a place where many newcomers are more confused, but we should note that this MSCI has brought a lot of money to the entire A** field.

What does the MSCI concept mean?

The concept of MSCI means that the stock belongs to the ** in the MSCI index, MSCI is the abbreviation of Morgan Stanley Capital International, and some people call the company "MSCI". It is an investment company that does equity, fixed assets, hedging, etc., and its best job is to compile indexes. Its index is similar to our domestic ETF**, and many international investment institutions will follow its index compilation to buy**, so the MSCI concept means that the index constituent stocks will be sought after by these institutions.

It is worth noting that there are not many constituent stocks included in the MSCI index of A-shares, and the sectors it mainly involves are finance, large consumption, medicine, etc., but the quality of such companies is almost the best in the entire A** field. Therefore, if we do value investment or long-term investment, this kind of MSCI concept is the best target for our investment.

For the entire A-shares, the inclusion of MSCI can significantly increase the proportion of overseas investors in the ** market, and with the change of investor structure, the market will be more inclined to value investment, and speculative trading will be suppressed. In this way, over time, the entire A** field will also have the possibility of slow bulls.

The full name of MSCI index is Morgan Stanley Capital International Index. It is a ** index compiled by MSCI (Morgan Stanley Capital International), a subsidiary of Morgan Stanley & Company, covering the world.

As the most authoritative ** index, it is widely referenced by investors. MSCI indices are used by global investors, broker-dealers, exchanges, portfolio managers, investment advisors, academics and financial**. It is also one of the most widely used investment targets among global portfolio managers, with MSCI estimating that more than 90% of international equity assets globally are based on MSCI indices, covering all segments of **, mid-cap and small-cap stocks.

MSCI stock selection process.

1. Define the sample space. MSCI compiles indices based on countries (or regions), and for each country, each company belongs to only one country (region).

2. For each listed company in the country (region), determine the market value of the company's shares that can be freely traded and circulated by international investors (free float market value).

3. Classify listed companies according to the global industry classification standards.

4. MSCI adopts the bottom-up method to construct the index, that is, at the level of the industry, the large free float market value is added in turn, so that the selected free float market value of each industry reaches 85% of the industry.

5. Fine-tune the selected market value in various industries, so that the free float market value of the selected market reaches more than 85% of the entire market.

MSCI is a kind of ** index released by Morgan Stanley, which is equivalent to the Shanghai Composite Index, but its selection and calculation methods and release are all released by Morgan Stanley Bank, Morgan Stanley Bank is very well-known in the world, so many international traders look at this index.

MSCI is the abbreviation of MSCI in the United States, and one of the company's awesome businesses is to compile indexes, and many of the world's ** companies allocate assets according to their indexes. Therefore, if A-shares are included in the MSCI index, there will be some overseas ** to invest in A-shares.

Objectively, the current inclusion of A-shares in MSCI has many flaws, such as our bizarre IPO approval system; Our ** often intervenes in the operation of the market; Our legal system is not perfect; ** Never let go of the RMB exchange rate;

The inclusion of A-shares in MSCI has far-reaching significance for the capital market, but it has no effect on the index in the near future.

The official name of A shares is RMB ordinary**. It is an ordinary share issued by a company in China for domestic institutions, organizations or individuals (excluding Taiwan, Hong Kong and Macao investors) to subscribe and trade in RMB**. A shares are not physical **, with paperless electronic bookkeeping, the implementation of the "T+1" delivery system, with a limit on the rise and fall (10%), and the participating investors are Chinese mainland institutions or individuals.

A few days ago, there was a big news in this financial circle. That's China's A** field. It was finally included in this MSCI index. What will be the impact on the A** market and investors?