MSCI’s grand plan for China

Regional breakdown for the MSCI Emerging Markets Index

The MSCI Emerging Markets Index currently includes more than 830 stocks, with roughly a quarter of the index’s exposure tied to China. Adding China A-shares and new overseas-listed Chinese stocks would add some 380 new stocks to the index and bump up China’s weighting to 43.6 percent, squeezing the index’s exposure to other emerging nations.

Market capitalization

On an combined market capitalization basis, the new Chinese securities to be added would together total some $1.53 trillion, the biggest of any one region, based on current securities in the MSCI's China A International Index and Overseas China Index.

As of June 10, in billions of dollars

China A-shares outperform other emerging markets stocks

Adding China A-shares to the MSCI Emerging Markets Index could boost the performance of the benchmark index, as Chinese mainland stocks have far outperformed not only other China stocks, but every other region in the MSCI Emerging Markets Index, over roughly the past year.

June 2014 to May 2015, percent change: