Chinese stocks rise sharply higher today on news that MSCI is considering to increase its A shares in the MSCI indexes.

MSCI noted that the 5% initial inclusion of China A implemented in May and August 2018 got “overwhelming positive feedback from market participants”. It’s has now launched a consultation on further weight increase. The investment community could provide MSCI with proposals till February 15, 2019 and the decision would be made on or before February 28, 2019.

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The current proposals including adding the weight of China A Large Cap securities from 5% to 7% in two phases, 7.5% each in May and August 2019. Also ChiNext could be added to the list of eligible stock exchange segments in May 2019. China A Mid-Cap securities with 20% included factor in one phase in May 2020.

MSCI’s full document here.

At the time of writing, China Shanghai SSE composite is trading up 1.37% at 2819, finally back above 2800 handle.

The news has apparently lifted Australian Dollar too. With today’s rise and 0.7228 minor support defended, AUD/USD is possibly extending the corrective rebound from 0.7084 through 0.7303 before completing it.

EUR/AUD’s rebound from 1.6051 could also be finished at 1.6252. And, the correction from 1.6353 would likely have another take on 1.6051 support before completion.

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