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Will MSCI include China’s A-shares? Five views

FSA asked several professionals from asset management firms for their view on the MSCI's upcoming decision to include China's A-shares in its emerging market indices.
by Fund Selector Asia
Blackrock

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In April, Blackrock has for the first time come out in support of MSCI A-share inclusion.

Helen Zhu, head of China equities, said in a briefing last month that MSCI inclusion would improve investor sentiment toward China, but she doubted if a positive decision would result in a large flow of capital into A-shares.

Instead, she prefers H-shares. “There has been about $50bn of southbound capital buying Hong Kong stocks through the Stock Connect, as H-shares have lower valuations [than A-shares],” she explained.

She also expected more inflows into Hong Kong equities from international investors as China’s economy shows signs of improvment.

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