MSCI to increase A-share weighting in indexes

Global index complier MSCI Inc has confirmed that it will increase the weighting of China's large-cap A shares in its global benchmarks in August as scheduled, which analysts said may usher in more than $20 billion worth of fresh foreign capital into the A-share market.

The inclusion factor of more than 200 large-cap A shares will be lifted from 10 percent to 15 percent as part of MSCI's quarterly index review, to be implemented as of the close on Aug 27, Wei Zhen, director of China research at MSCI told the China Securities Journal on Tuesday.

The inclusion factor dictates the weighting of stock constituents in MSCI benchmarks widely used by global investors, as the figure refers to how much of a stock's free-float market capitalization is included in the indexes.