Introduction

The MSCI China Free Index Includes large and mid-cap Chinese companies. Index constituents include B shares, H shares, Red chips, P chips and foreign listed shares. Currently, the index includes large cap and mid cap A shares represented at 20% of their free-float adjusted market capitalization.  As of 30 June 2020, there are 711 constituents. The index is calculated in a net total return form (i.e. reinvestment of net dividend payout into the index portfolio).

Uses of MSCI China Free Net Total Return (USD) Index Futures

The introduction of the MSCI China Free Net Total Return (USD) index Futures contract aims to meet the trading and hedging needs of investors who have exposure to large and mid-cap Chinese companies in a cost effective manner.  Asset managers and banks can make use of MSCI China Free Net Total Return (USD) Index Futures for cash equitisation and manage market, settlement and liquidity risks without cross zone trading issue. 

The constituent list and vendor codes can be found in MSCI websites https://www.msci.com/constituents and https://www.msci.com/ticker-codes respectively.

The Commodity Futures Trading Commission (CFTC) has certified the MSCI China Free Net Total Return (USD) Index Futures contracts to be offered and sold to persons in the U.S.