China A-Shares Emerging Market Index … Aon research: Onshore Chinese ... volume.3 Embracing foreign capital in its domestic equity market was a slow and extremely cautious process

Aon HewittRetirement and Investment

Risk. Reinsurance. Human Resources.

MSCI’s Announcement to Add China A-Shares to its Emerging Markets IndexLooking Beyond the Tiny Percentage

August 2017

Aon Hewitt MSCI's Announcement to Add China A-Shares to its Emerging Markets Index 2

Introduction

On June 20, 2017, MSCI announced that it will add 222 China A Large Cap shares to the MSCI Emerging Markets (EM) Index. When the inclusion is officially launched in June 2018, China A Large Cap shares are expected to account for about 0.73% of the MSCI EM Index. As the latest note in a series of three1 on the globalization of China’s financial markets, this paper explains the background of the index change, estimates future changes in the Index composition, and also points out the potential implications on institutional investors if China A-Shares claim 17% or more in the MSCI EM Index.

We beleive:

• In the near term, the announcement has more of a

symbolic meaning than actual impact.

• However, this tiny index change could potentially open

up a huge opportunity in the future.

• Further inclusion of A-Shares could happen much sooner

than the initial review process.

• The potential influx of institutional money could reach at

least 5.3% of the value of all A-Shares.

• Institutional investors should understand the implications

and adjust accordingly.

1 Aon research: Onshore Chinese Bonds Enter the Global Bond Universe, by Lucinda Downing Aon research: All Aboard the Through Train, China A-Shares, by James Jackson


China A-Shares, a big market but a tiny weight in the MSCI EM index

Being the second largest economy in the world, China has expanded its equity markets over

the past three decades to a size only ranked after the U.S. by market capitalization (Figure 1).

2 Aon research: All Aboard the Through Train, China A-Shares, by James Jackson

However, international investors’ participation in China’s

equity markets has not been proportionate to its share

of the world economy and of the global capital market,

primarily due to the tight control of foreign ownership and

access by Chinese authorities. Based on listing locations and

accessibility to different groups of investors, China’s equity

market is unique in its regulation and structured with multiple

classes of shares such as A, B, and H shares, as well as Red

and P chips and overseas listings. “A-Shares” refers to stocks

of those companies incorporated in China, listed in China,

and traded only in Renminbi (RMB) in either the Shanghai

or Shenzhen stock exchange. Please refer to Aon research All

Aboard the Through Train, China A-Shares, by James Jackson for

a detailed introduction to the China A-Shares market2.

Figure 1: Top equity markets by market capitalization ($B) as 3/31/2017

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

U.S (N

YSE E

uronex

t)

U.S (N

asdaq

)

Japan

(Jap

an Ex

chan

ge Gro

up)

China (Sh

anghai)

UK (London St

ock Ex

chan

ge Gro

up)

Euro

pe (NYS

E Euro

next)

Hong Kong

China (Sh

enzh

en)

China (Toro

nto)

India (B

ombay

)

Germ

any (

Deutsc

he Börse

)

Switz

erlan

dKore

a

Australi

a

Norther

n Euro

pe (NASD

AQ Nord

ic Ex

chan

ge)

NYSE&

Nasdaq

Com

bined

Shan

ghai & Sh

enzh

en C

ombined

Shan

ghai, Sh

enzh

en &

Hong Kong C

ombined

Source: World Federation of Exchanges and Bloomberg


The table below shows a comparison of the multiple classes of shares:

Among the multiple share classes—such as A, B, and H shares,

as well as Red and P chips and overseas listings—A-Shares

count for the lion’s share of China’s equities listed in Shanghai

and Shenzhen. Out of more than 4,500 Chinese companies

listed, 3,277 are A-Shares but are currently not included in the

MSCI China Index universe (Table 2).

Although China already comprises 28% of the MSCI EM Index

as of May 31, 2017, the MSCI China sub-index includes only

securities accessible to foreign investors such as B-Shares,

H-Shares, Red chips, P chips, and overseas listings (Figure 2):

A-Shares B-Shares H-Shares Red Chips P ChipsOverseas Listings

Incorporation Location China China China Outside of

China Outside of

China China

Listing Location China China Hong Kong Hong Kong Hong Kong U.S./Singapore

Trading Currency RMB USD/HKD HKD HKD HKD USD/SGD

Availability to Foreign Investors

Only under QFII, RQFII, and Stock Connect

Yes Yes Yes Yes Yes

Hong Kong Shanghai Shenzhen Nasdaq NYSE

Main board Chi-Next A-Shares B-Shares A-Shares B-Shares

Overseas listings*

Overseas listings*

No. of listed companies 1,746 287 1,294 51 1,983 49 127 22

No. of listed H-Shares 222 24 N/A N/A N/A N/A N/A N/A

No. of listed red chips 152 6 N/A N/A N/A N/A N/A N/A

No. of listed P Chips* 614 N/A N/A N/A N/A N/A N/A N/A

No. of listed securities 10,003 288 1,294 51 1,983 49 127 22

Market capitalisation (billion USD) $3,623 $34 $4,489 $15 $3,309 $12 $1,056 $71

Floating market capitalisation (billion USD) N/A N/A $3,764 $15 $2,304 $12 N/A N/A

Total market turnover (million USD) $10,006 – $24,147 – $31,058 – N/A N/A

Table 1: Comparison of multiple classes of shares

Table 2: Comparison of A-Shares listings in onshore China markets with other China listings

Source: HKEX, SSE

Source: HKEX, NYSE, NASDAQ Exchange rate used: 1 USD = 7.80 HKD, 1USD = 6.78 RMB *As of 5/31/2017


According to MSCI, its initial step to include A-Shares in its

Emerging Markets indices will be to add 222 Large Cap stocks

in a two-phased process beginning in June 2018. By then,

China A-Shares are expected to count for only 0.1% of the

MSCI All Country World Index (ACWI) Index, 0.73% of the

MSCI EM Index, 0.83% of the MSCI Asia ex Japan Index, and

2.5% of the MSCI China Index (Figures 3). China A-Shares

have been on MSCI’s review list since 2013. When the initial

inclusion weight is compared to the size of the entire China

A-Shares market, 0.73% is indeed a baby step that MSCI

made. MSCI would not have even included such a tiny weight

if it were not for a decade-long effort by China to open up

its capital markets. It has been a long journey for both China

and MSCI to make this change happen, and there is still a lot

more room for China to open its domestic equity markets to

international investors, and thus MSCI, to fully integrate China

into global equity markets.

Figure 2: Comparison of MSCI China Index composition before and after the initial inclusion

Figure 3: Index country weight distribution

Source: MSCI

Source: MSCI, as of 5/31/2017

MSCI China Index Composition as of 6/19/2017

Expected MSCI China IndexComposition by June 2018

A-Shares2.50%B-Shares

0.3%

H-Shares34%

Red Chips15%

P Chips24.2%

Overseas25.3%

B-Shares0.3%

H-Shares34%

Red Chips15%

P Chips24.2%

Overseas25.3%

MSCI ACWI Index MSCI EM Index

United States52.6%

Japan7.7%

United Kingdom6%

France6%

Germany3.2%

China3.1%

Canada3%

Switzerland3%

Australia2.3%

Korea1.7% Rest

14%

China27.7%

South Korea27.7%

Taiwan12.2%

India8.8%

Brazil6.9%

Other28.9%


Background of the baby step

China’s A-Shares market has not been easy for foreign

investors to access. They could only gain access to China’s

A-Shares market through strictly controlled quota schemes—

such as the Qualified Foreign Institutional Investor (QFII)

scheme and the Renminbi Qualified Foreign Institutional

Investor (RQFII) program—and Stock Connect, the latest

platform since 2014. The Stock Connect program allowed

foreign investors to access A-Shares traded in the Shanghai

or Shenzhen stock exchange via the Hong Kong stock

exchange, though with some restrictions such as daily trading

volume.3 Embracing foreign capital in its domestic equity

market was a slow and extremely cautious process for China.

The process for MSCI to include China A-Shares in its index

series has also been very slow. Among MSCI Global Market

Accessibility criteria, “openness to foreign ownership” and

“ease of capital inflows/outflows” are among the major

obstacles to MSCI not including China A-Shares in the

EM Index after three annual reviews prior to 2017. China has

gradually relaxed its QFII scheme and RQFII program since

2012. MSCI and the institutional investment community

welcomed this liberalization of China’s domestic equity

market and applauded when China launched the Shanghai-

Hong Kong and Shenzhen-Hong Kong Stock Connect

program since 2014. After China’s onshore stock market

crisis in the summer of 2015, Chinese authorities fought hard

to stop capital outflow as concerns over slower economic

growth and Renminbi devaluation drove massive capital flight

overseas. China’s foreign currency reserves dropped below

$3 trillion from as high as $4 trillion (Figure 4).

3 Aon research: All Aboard the Through Train, China A-Shares, by James Jackson4 Aon research: Onshore Chinese Bonds Enter the Global Bond Universe, by Lucinda Downing

While keeping tight hands on capital outflows by Chinese

residents and business entities, Chinese authorities also

welcomed foreign capital inflows in efforts to slow the decline

of its foreign currency reserve. On the other hand, the

International Monetary Fund (IMF) announced that Renminbi

(RMB) is included in the basket of Special Drawing Rights

(SDR), elevating RMB in the global reserve currency system

since October 2016. While RMB’s globalization makes solid

progress, we expect China’s onshore equity and debt markets4

to be more open to international investors. Following China’s

onshore bonds inclusion in the Bloomberg and Citigroup

local bond indices since early 2016, it is widely expected that

the global equity market index will embrace China’s onshore

stocks as well.

Figure 4: Historical trend of China’s foreign currency reserve

0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Dec 99

Oct 00

Aug 01Jun 02

Apr 03

Feb 04

Dec 04

Oct 05

Aug 06Jun 07

Apr 08

Feb 09

Dec 09

Oct 10

Aug 11Jun 12

Apr 13

Feb 14

Dec 14

Oct 15

Aug 16

$ tr

illio

ns

Source: SAFE


5 A multiplication factor ranging from 0% to 100% that MSCI uses to adjust the weight of constituents’ stocks

When A-Shares are fully included

As MSCI stated, “Further inclusion of China A-Shares could

potentially include an increase of the currently announced 5%

inclusion factor5 as well as the addition of China A Mid Cap

shares” depending on “how China’s A Shares market aligns

with international market accessibility standards.” MSCI has

the discretion to increase the initial 222 Large Cap A-Shares

names only available through Stock Connect to a much larger

pool. China’s country weight could potentially increase from

28% currently in the MSCI EM Index to as much as 41% in the

future, according to MSCI (Figure 5). However, such a leap is

primarily dependent on the willingness of China to continue to

open and transform its domestic equity market.

Given China’s ambition to solidify its global leadership,

further including foreign capital in its domestic equity market

is likely in the interest of China. We expect future inclusion

of more China A-Shares in the global equity market index to

accelerate. Along with this process, institutional investors need

to incorporate the index composition changes in investment

policy setting, equity research, manager selection, and

operations management. The potential magnitude of the

A-Shares weight change could be unprecedented compared to

any historical development in the MSCI EM Index.

Figure 5: Evolving MSCI EM Index composition

China HK Listed20.8%

China B andOverseas7.1%

Current MSCI EM Index MSCI EM with intial A-Shares

MSCI EM with 100% A-Shares

Korea15.6%

Taiwan12.3%

India8.9%

ASEAN8.2%

South Africa6.7%

Brazil6.6%

Mexico3.7%

Russia3.2%

Others7.0%


China B and Overseas7.1%

Korea15.3%

Taiwan12.1%

India8.8%

ASEAN8.1%

South Africa6.5%

Brazil6.5%

Mexico3.6%

Russia3.1%

Others6.9%

China A-Shares0.7%


China B and Overseas5.9%

Korea12.8%

Taiwan10.1%

India7.3%

ASEAN6.7%

South Africa5.5%

Brazil5.4%

Mexico3.0%

Russia2.6%

Others5.8%

China A-Shares16.9%

Source: MSCI


Implications

If China’s country weight claims 41% in the EM Index, and

A-Shares alone count for 17%, as MSCI has illustrated as

a future possibility, investors will need to incorporate the

A-Shares market risk/return profile in their capital market

assumptions for Emerging Markets Equity. When A-Shares

are at a full inclusion stage, we believe investors need to

re-evaluate the capability of their broad mandate managers

in Emerging Markets or Asia markets and be ready to deploy

specialist managers if necessary. Whether adopting a passive

or active strategy, investors will have to assess their prior

experience and exposure and identify available resources.

Certain style and factor investment managers will need to

calibrate their factor investing approaches for some unique

characteristics of A-Shares. On the operational front, investors

need to embrace different trading and settlement rules.

1. Capital market assumptions Historically, investors’ base of A-Shares has been dominated

by retail investors and the historical performance was primarily

driven by speculation. When measured by the China Securities

Index (CSI) 300 Index6, Large Cap A-Shares performed

differently from the MSCI China Index, as illustrated below

in Figure 6 and Table 3.

Figure 6: Historical growth comparison

1.1.2005

8.1.2005

3.1.2006

10.1.2006

5.1.2007

12.1.2007

7.1.2008

2.1.2009

9.1.2009

4.1.2010

11.1.2010

6.1.2011

1.12012

8.1.2012

3.1.2013

10.1.2013

5.1.2014

12.1.2014

7.1.2015

9.1.2016

0

$100

$200

$300

$400

$500

$600

$700

2.1.2016

4.1.2017

Source: MSCI

Source: MSCI, Bloomberg

As of 6/30/2017Annualized Return Annualized Volatility

MSCI China Index CSI 300 Index MSCI China Index CSI 300 Index

1 Year 32.3% 18.8% 11.9% 11.9%

3 Years 8.3% 21.6% 21.2% 29.8%

5 Years 9.2% 10.6% 18.5% 26.8%

10 Years 4.2% 1.4% 27.1% 31.8%

Table 3: Comparison of annualized historical return and risk

Q MSCI China Q CSI 300

6 The CSI 300 Index consists of the 300 largest and most liquid A-Shares stocks traded in the Shanghai and Shenzhen stock exchanges


When A-Shares in Shanghai and Shenzhen are largely open

to international investors, an influx of institutional money and

trading patterns could change the returns and risk profile

of A-Shares. Investors trying to develop a fair assumption of

expected return and risk could take only limited reference from

the historical performance. Though Chinese authorities have

relaxed their stock suspension rules after the 2015 onshore

stock market crisis, stock suspension remains a unique factor

that needs to be considered.

2. Passive vs. active considerationsAsset owners need to evaluate whether a passive or active

strategy is the best approach to gain exposure. We believe

investors without prior exposure or experience with A Shares

are better off to adopt a passive strategy. Nevertheless, the

challenge is then shifted to managers and custodian banks,

which need to be ready to include 2,000+ companies.

Investors already embracing an active strategy in their

Emerging Markets Equity mandate need to realize that current

active Emerging Markets managers will be challenged with a

far broader research base, yet presented with opportunities of

alpha generation. Asset owners need to check whether their

equity fund managers have sufficient resources to develop

insights around the A-Shares market.

3. Broader mandate or specialist managerWe still believe a broader mandate of Emerging Markets and

ACWI Asia would be appropriate at the initial stage of MSCI

EM Index inclusion. However, at a full inclusion stage, investors

must determine whether a broader mandate manager

has sufficient capability to cover the entire China market.

Otherwise, a specialist manager should be considered. By

that time, we suspect that MSCI might roll out the Emerging

Markets ex China Index to pair with the China Index so

that investors have sufficient flexibility to deploy different

strategies. We encourage investors to review and evaluate

their current Global Equity and Emerging Markets managers in

the context of the evolving landscape.

4. Calibration of style and factor investment approach

We would like to point out some unique China A-Shares

market characteristics for investors who are used to mature

markets in the U.S. and Europe. For example, many state-

owned enterprises (SOEs) are traded at relatively low price-

to-earnings (P/E) ratios compared to the broader A-Shares. We

suggest that traditional value investors resist comparing SOEs

to other value stocks on the same platform. Due to the unique

stock suspension rule in Shanghai and Shenzhen exchanges,

historical volatility might not accurately reflect a stock’s real

risk level. Low-volatility managers will need to calibrate their

approach to count in the impact of stock suspensions. High

turnover of fund managers7 is common in China. Therefore,

short track records of many funds in A-Shares are another

reality for investors relying on back testing.

5. Different trading and settlement rulesA-Shares are subject to some unique trading rules, such as a

daily price limit of +/−10% and unit of trading quantity. Most

A-Shares are limited to a daily trading price range of +10%

to −10% of the prior day’s closing price. Currently, trading

quantity of A-Shares cannot be any random number of shares,

but has to be in the multiples of 100 shares. In addition to

the trading rule difference, the current settlement cycle of

A-Shares through Stock Connect is also different from the

schedule in the U.S. Securities settle on T day and money on

T+1 day for A-Shares through Stock Connect, as compared

to securities on T day and money on T+3 in the U.S.8 If such a

settlement cycle difference remains in the future, we don’t see

it as a risk for managers and brokers. Over the past few years,

working with local brokers, sub-custodian banks, and clearing

houses in China, many institutions have already handled

investing, and custody and accounting in the China market

effectively through Stock Connect.

7 Aon Hewitt Retirement & Investment Blog: “Volatility in China’s Stock Market” by Fei Amy Shang and John Thompson https://retirementandinvestmentblog.aon.com/BlogHome/Blog/October-2015/Volatility-in-China’s-Stock-Market.aspx

8 http://english.sse.com.cn/investors/shhkconnect/clear


More than the influx of passive money

As of December 31, 2016, assets in passive and active strategies benchmarked to MSCI ACWI

(including ACWI Investable Market Index and ACWI ex USA) total $2.88 trillion, and the MSCI EM

Index totals $1.59 trillion. In Table 4, we estimated the institutional money that could follow the

index change when A-Shares weight ranges from 0.73% to 16.9% of the MSCI EM Index.

The above calculation has not considered assets benchmarked

to other indices such as the FTSE series. As MSCI illustrated in

Figure 5, if China’s weight rises to 41%, H-Shares would count

for 18%, B-Shares and overseas 6%, and A-Shares 17%. By then,

Mid and Small Cap stocks could be included within the basket

of A-Shares, as compared to only Large Cap stocks at the initial

inclusion stage. This composition could be different depending

on China’s market openness. A-Shares could weigh more

and other share classes less in the total weight of China. The

potential influx as a percentage of the entire A-Shares market

size could be much higher than 5.3%, which is already a huge

inflow of capital.

In addition to the massive institutional money that could

follow the index change, we would also point out potential

alpha sources for active managers such as sectors sensitive to

domestic consumptions and Mid to Small Cap stocks that align

better with China’s economic growth orientation.

In comparing the sector weights of the current MSCI

China Index to the CSI 300 Index, A-Shares will challenge

active managers with a drastically different sector exposure

(Figure 6). Sectors such as Materials, Consumer Staples,

Health Care, Industrials, Consumer Discretionary, and Financials

are weighted much higher in the CSI 300 Index than the level

in the current MSCI China Index.

Based on the broadest CSI China A-Shares Index, the

distribution of Large Cap, Mid Cap, Small Cap, and Mini Cap is

33% / 15% / 16% / 20%, respectively, while the Large and Mid

Cap split in the MSCI China Index is 87% / 13%, respectively.

Active managers could access a much larger pool of Mid to

Small Cap stocks. In addition, the P/E ratio differences between

A-Shares and other China share classes could be explored by

active managers as well as for alpha generation.

Source: MSCI, eVestment, Morningstar, Bloomberg

China A-Shares Initial Weight

Potential China

A-Shares Weight

Benchmarked A-Shares

AUM Range ($billions)

MSCI ACWI 0.08% 1.88% $2.3–$54.0

MSCI EM 0.73% 16.90% $11.6–$268.7

Total $13.9–$322.7

As A % Of The Entire A-Shares Market 0.23%–5.32%

Table 4: Estimate of institutional money influx


Summary

We welcome MSCI’s move to include China A-Shares in the MSCI EM

Index, as investors start to access the investment universe of the second

largest economy in the world. In the near term, the announcement has

more of a symbolic meaning than actual impact on market participants.

We encourage investors to look beyond the initial tiny weight that

A-Shares constitute in the MSCI EM Index. We expect A-Shares to

claim higher weight in the EM Index and at a much faster pace if

China further opens up its domestic equity market. Before A-Shares

account for a more substantial weight, we believe that investors

should understand the potential implication of such a change and

make adjustments on investment policy setting, manager selection,

investment approach, and operational management accordingly.

Figure 7: Sector weight comparison

0%

Information technology

Consumer discretionary

Energy

Real estate

Health care

Materials

Consumer staples

Utilities

Industrials

Telcom

Financials

5% 10% 15% 20% 25% 30% 35% 40% 45%

Source: MSCI, China Securities Index

Q CSI 300 Index Q MSCI China Index

Contact

Fei Amy Shang, CFA Senior Investment Consultant +1(312) 381 1329 [email protected]

Aon Hewitt Investment Consulting, Inc., an Aon plc

company (NYSE:AON), is an SEC-registered investment

adviser, a CFTC-registered commodity pool operator and

commodity trading adviser, and a member of the NFA.

We provide independent, innovative solutions to address

the complex challenges of 488 clients in North America

with total client assets of approximately $1.8 trillion as of

June 30, 2015. Our firm, consisting of over 300 colleagues,

advises institutional investors such as corporations,

public organizations, union associations, health systems,

endowments, and foundations with investments ranging

from $1 million to $310 billion. For more information, please

visit: http://www.aon.com/human-capital-consulting/retirement/investment-consulting/default.jsp

About Aon Hewitt Investment Consulting, Inc

DisclaimerThis document has been produced by the Investment Policy

Services Group, a division of Aon plc and is appropriate

solely for institutional investors. Nothing in this document

should be treated as an authoritative statement of the law

on any particular aspect or in any specific case. It should

not be taken as financial advice and action should not be

taken as a result of this document alone. Consultants will be

pleased to answer questions on its contents but cannot give

individual financial advice. Individuals are recommended to

seek independent financial advice in respect of their own

personal circumstances. The information contained herein

is given as of the date hereof and does not purport to give

information as of any other date. The delivery at any time

shall not, under any circumstances, create any implication

that there has been a change in the information set forth

herein since the date hereof or any obligation to update or

provide amendments hereto. The information contained

herein is derived from proprietary and non-proprietary

sources deemed by Aon Hewitt to be reliable and are not

necessarily all inclusive. Aon Hewitt does not guarantee the

accuracy or completeness of this information and cannot

be held accountable for inaccurate data provided by third

parties. Reliance upon information in this material is at the

sole discretion of the reader.

This document does not constitute an offer of securities

or solicitation of any kind and may not be treated as such,

i) in any jurisdiction where such an offer or solicitation is

against the law; ii) to anyone to whom it is unlawful to make

such an offer or solicitation; or iii) if the person making

the offer or solicitation is not qualified to do so. If you are

unsure as to whether the investment products and services

described within this document are suitable for you, we

strongly recommend that you seek professional advice

from a financial adviser registered in the jurisdiction in

which you reside. We have not considered the suitability

and/or appropriateness of any investment you may wish to

make with us. It is your responsibility to be aware of and to

observe all applicable laws and regulations of any relevant

jurisdiction, including the one in which you reside.

Aon Hewitt Limited is authorized and regulated by the

Financial Conduct Authority. Registered in England &

Wales No. 4396810. When distributed in the US, Aon

Hewitt Investment Consulting, Inc. (“AHIC”) is a registered

investment adviser with the Securities and Exchange

Commission (“SEC”). AHIC is a wholly owned, indirect

subsidiary of Aon plc. In Canada, Aon Hewitt Inc. and

Aon Hewitt Investment Management Inc. (“AHIM”) are

indirect subsidiaries of Aon plc, a public company trading

on the NYSE. Investment advice to Canadian investors is

provided through AHIM, a portfolio manager, investment

fund manager and exempt market dealer registered under

applicable Canadian securities laws. Regional distribution

and contact information is provided below.

Aon plc/Aon Hewitt Limited

Registered office:

The Aon Centre

The Leadenhall Building

122 Leadenhall Street

London, EC3V 4AN

Aon Hewitt Investment Consulting, Inc.

200 E. Randolph Street

Suite 1500

Chicago, IL 60601

USA

Aon Hewitt Inc./Aon Hewitt Investment Management Inc.

225 King Street West, Suite 1600

Toronto, ON

M5V 3M2

Canada

About Aon Aon plc (NYSE:AON) is a leading global provider of risk manage-

ment, insurance brokerage and reinsurance brokerage, and human

resources solutions and outsourcing services. Through its more than

72,000 colleagues worldwide, Aon unites to empower results for

clients in over 120 countries via innovative risk and people solutions.

For further information on our capabilities and to learn how we em-

power results for clients, please visit: http://aon.mediaroom.com.

© Aon plc 2017. All rights reserved.

Risk. Reinsurance. Human Resources.

The information contained herein and the statements expressed are of a general nature and are not

intended to address the circumstances of any particular individual or entity. Although we endeavor to

provide accurate and timely information and use sources we consider reliable, there can be no guarantee

that such information is accurate as of the date it is received or that it will continue to be accurate in the

future. No one should act on such information without appropriate professional advice after a thorough

examination of the particular situation.

Aon Hewitt Limited is authorised and regulated by the

Financial Conduct Authority. Registered in England & Wales.

Registered No: 4396810.

www.aon.com

Documents

China A-Shares Emerging Market Index … Aon research: Onshore Chinese ... volume.3 Embracing foreign capital in its domestic equity market was a slow and extremely cautious process