Mutual funds that are benchmarked to the MSCI Emerging Markets Index will also be required to hold some A-shares. When MSCI rejected the A-shares on a number of regulatory and compliance issues, the stock markets tanked. The Deutsche X-Trackers China A-Shares (ASHR) ETF is down 50.4% since its peak in June 2015 as a result. They have $10 trillion in benchmarked assets with $1.6 trillion of funds tracking the MSCI Emerging Markets Index alone. "The China A-shares market has a 5% higher earnings expectations than the U.S. equity market," says Dr. Xiaolin Chen, head of investment solutions at KraneShares.

Source: Forbes June 08, 2017 18:26 UTC