Xtrackers Capital Markets
The wall comes down for Chinese A-Shares
What does the MSCI index inclusion mean for EM investors?
On June 20, 2017, MSCI announced that it will include Chinese A-Shares in the MSCI Emerging Markets Index.
— MSCI will start with a 0.73% allocation to 222 A-Share stocks in the MSCI Emerging Markets Index beginning in June 2018.
— Full A-Share inclusion in the MSCI Emerging Markets Index would constitute a 17% weight to Chinese A-Shares and roughly $272 billion in capital moving to A-Share markets.
— Mainland China is under-owned when considering current Emerging Markets (EM) weightings.
Services share of GDP in China on the rise
Growth potential to converge with service-based OECD*
— ASHR is the leading product in the space due to its scale, liquidity, options market and broad client base.
— ASHR was the first physical China A-Share ETF to market and has a long history of navigating the A-Share market.
— Secondary market liquidity is key when factoring trade entry and exit costs. ASHR has a proven ability to handle stressed market environments,
including the week of 7/6/15 when ASHR efficiently traded $2.2 billion.
— During two-week holidays in China, ASHR becomes the market proxy for Chinese A-Shares.
— ASHR is the only A-Share ETF with a liquid options market.
— It offers the highest exposure to the 222 A-Shares to be included in the MSCI Emerging Market Index.
|Xtrackers delivering China-focused equity ETFs to U.S. investors
|Xtrackers Harvest* CSI 300 China A-Shares ETF
|Xtrackers CSI 300 China A-Shares Hedged Equity ETF
|Xtrackers Harvest CSI 500 China-A Shares Small Cap ETF
|Xtrackers MSCI All China Equity ETF