The cross-market investable index will offer diversified coverage of China equities.
Northbound flows surged in 2018 and in January they set a record, as the Stock Connect finally gains momentum.
Expected to launch next week, the cross-border link will allow investors to buy stocks indirectly through depositary receipts.
To prepare for China’s MSCI indices inclusion, regulators in Hong Kong and China have announced a four-fold increase in daily trading quotas for the cross-border Stock Connect programmes.
China’s regulator has clarified its position on the halt of Hong Kong equity fund approvals and released some rules for firms intending to launch them.
The mainland joint ventures of First State, HSBC and Invesco are among the firms awaiting approval for Hong Kong equity funds, which the regulator is said to have halted due to concern over a surging Hong Kong stock market, local media reported.
MSCI’s newest proposal limits the scope of potential inclusion of China A-shares in the company’s equity indices.
ETFs from several firms are expected to roll out in Hong Kong in the next three months, hoping to catch the ETF Connect train and feed the appetite of mainland investors, said Tobias Bland, Enhanced Investment Products CEO.
China’s regulator has formally approved the Shenzhen-Hong Kong Stock Connect, which was expected to launch last year.
After a Brexit delay, Hong Kong’s Shenzhen market connect is “imminent” and the Shanghai-London link will go forward, according to reports.