MSCI likely to increase weighting of A shares

Global index provider MSCI is likely to approve increasing the weighting of China's A shares in its indexes this week, as the country's capital market reform and opening-up increases the allure of its markets, analysts said.

"MSCI is very likely to increase the inclusion factor of large-cap A shares to 20 percent. We prudently estimate this will usher in about $60 billion to $70 billion into the market this year," said Bao Ting, a strategy analyst with Shenzhen, Guangdong province-based Great Wall Securities.

In September, MSCI launched a consultation on increasing the inclusion factor of 235 large-cap A shares to 20 percent from 5 percent in two phases in May and August this year. Decisions of the consultation will be announced on or before Feb 28, it said.