MSCI to include China stocks listed abroad in EM indexes

Hong Kong

MSCI will begin to add overseas-listed Chinese shares to its emerging market indexes this month, drawing billions of dollars into such stocks, which could eventually lead to mainland-listed companies finding their way into global equity portfolios.

The index provider's decision in June not to include domestically listed China stocks, known as A-shares, in its global indexes, which are tracked by equity funds holding trillions of dollars, contributed to a sharp sell-off, prompting the Chinese authorities to launch a heavy-handed rescue operation.