Fund managers beef up exposure to China A-shares as domestic market becomes increasingly accessible

MSCI to include 222 China A-shares in benchmark indices

Fund managers are bolstering their allocations to China A-shares as the opening up of the domestic market to global investors powers on and new money floods in.

This year will see index provider MSCI include 222 China A-shares in its benchmark indices in two stages: the first phase in May and the next in August. The move will mean all passive funds tracking such indices will have to buy A-shares and follows the introduction of the Shanghai- and Shenzhen-Hong Kong Stock Connect programmes, which launched in November 2014 and December 2016 respectively, to open up the domestic market.  As a result, Schroders has changed the investment objective on seven of its Asian funds in the Schroder International Selection Fund range, increasing the mandat...