New MSCI EM Stocks Provide Exposure to 3 Major Transformational Changes Unfolding in China

Roughly 230 Chinese A-share stocks were added to MSCI’s emerging markets index on Friday. A-shares are stocks of Chinese companies that are incorporated on the mainland, quoted in renminbi, and listed in Shanghai and Shenzhen. Until now, A-shares were only open to a select number of qualified financial institutions which needed regulatory approval in Beijing. With this change, ordinary foreign investors will now have access to China’s secular growth sectors such as materials, industrials, consumer discretionary, and healthcare, which are currently under-represented in other share classes. Several provide exposure to three transformational changes that are unfolding in China today: The aging of China’s population, the development of the world’s first surveillance economy, and China’s electric vehicle & green energy revolution . . .