Impact on MSCI China. After the implementation, industrials’ weighting in MSCI China will increase to 4.9% from 4.7%. However, IT’s weighting will fall to 38.4% from 38.6%. Within MSCI China, Baozun ADR, Country Garden Services and Hua Hong Semiconductor will see the greatest increases in weighting. Tencent, Alibaba and CCB will decrease the most.
Impact on MSCI Asia x Japan. Within Asia x Japan, China’s weighting will increase the most, up to 36% from 35.7%. In contrast, Taiwan’s weighing will see the greatest drop, down to 13.5% from 13.6%. At the sector level, industrials will increase the most, followed by consumer discretionary. IT and financials will decrease the most. Within MSCI Asia x Japan, LG Uplus, Page Industries and BaoZun ADR are the top 3 gainers in weighting. At the other end, Tencent, Alibaba and TSMC will decline the most.
Source : Maybank Kim Eng Research