MSCI will begin tracking some 222 mainland shares for Chinese stocks as part of its emerging markets index. These stocks are worth $3.8 trillion in combined market value, but will account for a mere 0.7% of the MSCI’s emerging market index. Already, roughly $1.6 trillion in mutual and exchange-traded funds (ETFs) trade based on MSCI’s emerging markets index and this latest decision will give U.S. investors greater access to the world’s second largest economy.
The MSCI is expected to begin including these Chinese stocks in two stages starting in May 2018. Many of these stocks only trade on Chinese stock exchanges – meaning funds and ETFs tracking the MSCI indices will be the only way to gain exposure to them by American investors.
Based on MSCI data, Fortune magazine has compiled the following list of 40 of the biggest Chinese stocks based on market cap:
| Company | Industry | Market Cap (b) |
|---|---|---|
| BYD | Automobile Manufacturers | $19.4 |
| BANK OF BEIJING | Regional Banks | $19.9 |
| BOE TECHNOLOGY GROUP | Technology Hardware, Storage & Peripherals | $20.3 |
| NEW CHINA LIFE INSURANCE | Life & Health Insurance | $20.7 |
| JIANGSU HENGRUI MEDICAL | Pharmaceuticals | $20.8 |
| SHANGHAI INTERNATIONAL PORT | Marine Ports & Services | $20.8 |
| GUANGZHOU AUTO GROUP | Automobile Manufacturers | $21.4 |
| BANK OF SHANGHAI | Diversified Banks | $21.6 |
| CHINA RAILWAY CONSTRUCTION | Construction & Engineering | $22.6 |
| PING AN BANK | Diversified Banks | $23.0 |
| HAITONG SECURITIES | Investment Banking & Brokerage | $23.4 |
| CHINA MERCHANTS SHEKOU | Real Estate Development | $24.1 |
| GUOTAI JUNAN SECURITIES | Investment Banking & Brokerage | $24.5 |
| CHINA EVERBRIGHT BANK | Diversified Banks | $26.2 |
| CHINA RAILWAY GROUP | Construction & Engineering | $27.3 |
| CITIC SECURITIES | Investment Banking & Brokerage | $28.8 |
| WULIANGYE YIBIN | Distillers & Vintners | $29.3 |
| CHINA COMMUNICATIONS CONSTRUCTION | Construction & Engineering | $32.6 |
| MIDEA GROUP | Household Appliances | $38.0 |
| HANGZHOU HIKVISION DIGITAL | Electronic Equipment & Instruments | $39.6 |
| CRRC CORP | Construction Machinery & Heavy Trucks | $39.7 |
| CHINA CITIC BANK | Diversified Banks | $39.8 |
| CHINA PACIFIC INSURANCE | Multi-line Insurance | $40.4 |
| CHINA STATE CONSTRUCTION | Construction & Engineering | $40.9 |
| CHINA MINSHENG BANK | Diversified Banks | $42.0 |
| CHINA YANGTZE POWER | Renewable Electricity | $46.9 |
| INDUSTRIAL BANK | Diversified Banks | $48.5 |
| SAIC MOTOR CORPORATION | Automobile Manufacturers | $50.3 |
| SHANGHAI PUDONG DEVELOP. BANK | Diversified Banks | $51.1 |
| BANK OF COMMUNICATIONS | Diversified Banks | $61.0 |
| CHINA MERCHANTS BANK | Diversified Banks | $77.2 |
| KWEICHOW MOUTAI | Distillers & Vintners | $86.6 |
| CHINA PETRO & CHEM | Integrated Oil & Gas | $104.2 |
| CHINA LIFE INSURANCE | Life & Health Insurance | $106.1 |
| PING AN INSURANCE | Life & Health Insurance | $127.0 |
| BANK OF CHINA | Diversified Banks | $152.8 |
| AGRICULTURAL BANK OF CHINA | Diversified Banks | $162.3 |
| PETROCHINA | Integrated Oil & Gas | $195.2 |
| CHINA CONSTRUCTION BANK | Diversified Banks | $207.7 |
| ICBC | Diversified Banks | $255.9 |
To read the whole article, The 40 Biggest Chinese Companies Being Added to the MSCI Index, go to the website of Fortune. In addition, check out our China ETFs list and our China Closed-End Funds list.
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