MSCI China Index adds 19 new A-share constituents

On May 13th, the international index provider MSCI announced the results of the May 2026 index review.
In this adjustment, MSCI China Index newly included 19 A-share stocks such as Guangku Technology, Tianhua New Energy, Changfei Fiber, and Changxin Bochuang, while removing 16 A-share stocks including Stone Technology, CICC Securities, China Communications Signaling.
Apart from A-shares, MSCI China Index also added two Hong Kong stocks, COSCO Shipping Energy and Jiantao Laminates, and one U.S. depositary receipt (ADR), Full Truck Alliance.
It removed eight Hong Kong stocks including AVIC Science & Technology, CITIC Financial Assets, Yuewen Group, China State Construction International, Jiangsu Ninghu Highway, Meitu, NetEase Cloud Music, and Weigao Group.

Among MSCI series indices involving A-shares are MSCI China Index, MSCI China A Onshore Index, and MSCI China All Stocks Index.
The most closely watched is the MSCI China Index. This index is nested within the MSCI Global Standard Index series, so stocks included in the MSCI China Index will attract a large amount of passive tracking funds.

In the global markets, the MSCI All Country World Index (ACWI) added 49 stocks and removed 101 stocks.
The largest market capitalization additions to the MSCI Global Standard Index this time include medical consumables company Medline, infrastructure engineering and construction firm MasTec, and energy services company TechnipFMC.
The top three largest market cap additions to the MSCI Emerging Markets Index are Brazil’s Itaú Unibanco, Changfei Fiber, and Baile Tianheng.

The results of this adjustment will take effect after the close on May 29, 2026.
The impact of the index adjustment will mainly focus on individual stocks.
Based on historical experience, passive funds tend to rebalance at the end of the day to minimize tracking error.
Therefore, on the effective date, market activity often shows significantly increased trading volume for stocks with large weight changes.
Additionally, semi-annual index reviews in May and November tend to have larger adjustments and broader scope, thus exerting a stronger impact on the relevant stocks compared to regular quarterly adjustments.

Wang Zonghao, Head of China Equity Strategy Research at UBS, said: “We track about 800 active overseas funds that include Chinese stocks in their portfolios, collectively holding approximately $246 billion in Chinese equities.
Looking ahead, the risk appetite of foreign investors for emerging market stocks is rebounding, which will benefit Chinese stocks.”