Global index provider MSCI has added 14 Chinese companies to its China Index as part of its August 2025 review, a move analysts say could draw more foreign capital into the country's markets.
The reshuffle, effective after market close on Tuesday, also saw 17 Chinese stocks removed.
Of the new inclusions, nine are Hong Kong-listed firms spanning technology, innovative pharmaceuticals and consumer sectors, while five are mainland A-shares that have rallied strongly this year.
Three of the A-shares stocks have more than doubled in value since January.
Analysts said the additions could bring incremental passive inflows, as the MSCI Emerging Markets Index also tracks stocks included in the MSCI China Index.
The MSCI China Index has gained more than 30 percent so far this year, significantly outperforming the MSCI Emerging Markets Index.
JPMorgan projects the index could climb another 9 percent by the end of this year, potentially reaching 89 compared with its recent level of around 81–82.
"From what we see, our investors have already been gradually increasing allocations to Hong Kong and A-shares. Funds are flowing back, and overseas interest is rising. The main reason is that corporate earnings are providing fairly strong support. A relatively optimistic judgment for the end of this year is that the MSCI China Index could reach 89, which means there is still about 9 percent upside from the recent level of 81 to 82," said Liu Mingdi, Chief Asia and China Equity Strategist at JPMorgan.
MSCI Index adds 14 Chinese stocks, boosting investment confidence
