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A-Team Insight Blogs

MSCI Launches New Overseas China Indices

MSCI, a leading provider of investment decision support tools worldwide, including indices, portfolio risk and performance analytics and corporate governance services, announced today the launch of the MSCI Overseas China Indices. The new indices cover over 60 Chinese securities listed in the US and Singapore with a market capitalization of USD 68 billion, none of which are currently included in the existing MSCI China Indices.

“The launch of the MSCI Overseas China Indices provides investors with a more complete view of the China equity market by capturing Chinese securities listed outside Greater China,” said Deborah Yang, Managing Director and Head of Asia Pacific ex Japan for MSCI. “The creation of the MSCI Overseas China Indices has been driven by strong interest from institutional investors, particularly QDII managers in China, as they search for the most appropriate index for benchmarking or for the creation of index-linked investment products.”

The MSCI Overseas China Indices are designed to capture the investable universe of Chinese securities outside Greater China, covering Chinese securities listed on the NYSE Euronext – New York, NASDAQ, New York AMEX and the Singapore Exchange.

“We believe that the MSCI Overseas China Indices are the most comprehensive and rigorously constructed indices covering this important investment opportunity set,” added Chin-Ping Chia, Head of MSCI Index and Applied Research for Asia Pacific. “For example, they exclude companies formed through reverse merger or currently on the SGX Watch List. In addition, the indices employ similar size and liquidity screens to those currently applied to the MSCI China Indices to ensure consistency and investability.”

The MSCI Overseas China Indices have also been combined with the existing MSCI China Indices, creating 60 new indices in total – all of which are available direct from MSCI starting today. For example, the combination of the MSCI Overseas China Index with the existing MSCI China Index and the MSCI China A Index, forms the new MSCI All China Index. Large, mid and small cap versions of the MSCI All China Index are also available, covering over 2,100 constituents and providing a comprehensive global representation of the China investment opportunity set.

Another new combination resulting from the launch of the MSCI Overseas China Indices is the MSCI International China Index (MSCI China Index + MSCI Overseas China Index), which captures exposure across Chinese securities listed in Greater China, US and Singapore and available to global investors.

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