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ChinaAMC Licenses MSCI China A Index for New China A Shares ETF

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MSCI Inc. (NYSE:MSCI) , a leading provider of investment decision support tools worldwide, has licensed the MSCI China A Index to China Asset Management Co., Limited (ChinaAMC) for a new ETF, the ChinaAMC MSCI China A ETF, to be listed on the Shanghai Stock Exchange in March.

With over USD 50 billion in assets under management1, ChinaAMC is one of the largest asset managers in Mainland China, and launched the first ever ETF there in 2005. The ChinaAMC MSCI China A ETF is the first ETF to be listed in Mainland China that tracks a China A index from an international index provider.

“We chose to license the MSCI China A Index as the basis for our new ETF for two reasons: MSCI’s globally recognized brand, and the broad and diverse coverage offered by the index,” said Ms Li Yi Mei, Chief Marketing Officer, ChinaAMC. “We believe that the combination of these factors will make the ChinaAMC MSCI China A ETF an efficient and appealing investment vehicle for both domestic and international investors wishing to invest in China.”

“We believe that the licensing of the MSCI China A Index to ChinaAMC, a firm with a leading position in China, is testament to the growing franchise that MSCI has built since opening our office in Mainland China in 2007,” said Theodore Niggli, Head of MSCI’s Index business in Asia Pacific. “The MSCI China A Index is the benchmark for a number of QFII funds used by international investors to invest in China, and we are sure that China based investors will also see value in its broad and diversified coverage.”

The MSCI China A Index is constructed based on the same methodology as the MSCI Global Investable Market Indexes, which are widely adopted by international investors. This consistency of methodology allows investors to analyze the opportunity set of the China A shares market in the same manner as other global equity markets. Key features of the MSCI China A Index include:

  • Targets 85% free float market capitalization coverage
  • Broad industry representation
  • Current number of index constituents is 5232

With no fixed number of index constituents, the MSCI China A Index is able to reflect the ongoing evolution of this market’s structure.

For more information: MSCI China A Index Factsheet

1 Source: http://www.chinaamc.com/english/AboutChinaAmc/CompanyOverview/index.shtml

2 As of December 31, 2014

About MSCI

MSCI Inc. is a leading provider of investment decision support tools to investors globally, including asset managers, banks, hedge funds and pension funds. MSCI products and services include indexes, portfolio risk and performance analytics, and ESG data and research.

The company’s flagship product offerings are: the MSCI indexes with over USD 9.5 trillion estimated to be benchmarked to them on a worldwide basis1; Barra multi-asset class factor models, portfolio risk and performance analytics; RiskMetrics multi-asset class market and credit risk analytics; IPD real estate information, indexes and analytics; MSCI ESG (environmental, social and governance) Research screening, analysis and ratings; and FEA valuation models and risk management software for the energy and commodities markets. MSCI is headquartered in New York, with research and commercial offices around the world.

1 As of June 30, 2014, as reported on September 30, 201, by eVestment, Morningstar and Bloomberg

For further information on MSCI, please visit our web site at www.msci.com

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