The A-share market is getting closer and closer, and the market is discussing the MSCI index very enthusiastically. So what is the MSCI index?

Today, Financial Manager will introduce it to you!

The "MSCI Country Index" is collected by Morgan Stanley Capital International (MSCI) on each listed company's stock price, issuance volume, major shareholder holdings, free float, monthly trading volume and other data, and ranks the listed companies according to global

According to the Industry Classification Standard (GICS), 60% of the market capitalization stocks in each industry are selected as constituent stocks according to certain standards. The selection criteria include size (market capitalization), long-term and short-term trading volume, cross-shareholdings and the number of outstanding shares.

Because MSCI first divides industries and then selects stocks from the industries, this ensures that each industry in the index portfolio has a relatively fixed proportion of stocks, making the index highly representative of the industry.

The reason why the MSCI index can be recognized by international institutions as a reference for capital allocation is mainly based on the following factors: Objectivity: When MSCI compiles the index, it must first have professionals study the political economy of each country and then compile it in accordance with scientific methods.

Moreover, the calculation formulas of each index are unified so that long-term performance comparisons between indexes can be made.

Impartiality: MSCI maintains a high degree of confidentiality during the index compilation process; maintains a high degree of rigor in future tracking; and maintains a high degree of neutrality when changing the calculation formula to avoid large inflows of funds into the local market and increase instability.

Practicality: In addition to calculating the local currency-denominated index, MSCI also compiles the U.S. dollar-denominated stock price index in terms of the unit of calculation for index compilation, so that international investors can easily compare.

Reference: For international fund managers and investment institutions, only by building an investment portfolio with good performance can they beat the market.

However, the stock price index compilation methods of various countries are different, and the exchange rate changes in each country will also affect the return on investment, causing problems in investment reference and performance evaluation? MSCI has considered the above factors when compiling the index.

Mobility: As the company's finances and stock prices change, or political, economic, and legal restrictions change, will the stock price index lose its reference value after a period of time? MSCI will adjust its constituent stocks every quarter to avoid

This question.

Openness: The indexes compiled by MSCI are disseminated through many media, and information such as daily index changes or index content changes are quickly disseminated around the world through websites and international media such as Reuters and Bloomberg.

MSCI provides a series of indexes used by international investors, mainly including: MSCI ACWI (All Country World Index) Free Index SM: an index that measures the performance of the global securities market and is adjusted by free float market capitalization. As of April 2002, the index consists of 49 developed and emerging market countries (

Region); MSCIWorldIndexSM: composed of 23 developed countries.

MSCIEAFEIndex(EuropeAustraliaFarEast), composed of other developed countries except the United States and Canada; MSCIEMF(EmergingMarketsFree)IndexSM: composed of 28 emerging market countries; MSCIEMF(EmergingMarketsFree)LatinAmericaIndexSM, composed of 7 emerging market countries in Latin America; MSCIEM(

EmergingMarkets)EasternEuropeIndexSM, composed of 10 emerging market countries in Eastern Europe, the Middle East, and Africa; MSCIEuropeIndexSM, composed of 16 developed countries in Europe; MSCIEMU (EuropeanEconomicandMonetaryUnion)IndexSM: composed of 11 countries in the Eurozone; MSCIAC (AllCountry)FarEastFreeexJapanIndexSM:

It consists of 9 developed and emerging market countries in the Far East except Japan.

In addition, it also includes some specialty indexes and fixed income indexes.