The Postal Savings Bank of China (PSBC) has been added on May 15 as a Constituent Stock in the Morgan Stanley Capital International (MSCI) China Index, to be effective after the stock market has closed on May 30, 2018.
Industry insiders pointed out that the MSCI adjustment was the most important one related to A shares over the years, which was expected to bring 100 billion yuan (15.596 billion U.S. dollars) of overseas funds.
These funds will be allocated to major finance, consumption and public utilities.
MSCI is a leading provider of global equity indices and benchmark-related products and services to investors worldwide. The index includes companies with good business results and potential and is broadly used as one of the international stock performance benchmarks by institutional investors.
The MSCI China Index aims to represent the performance of large- and mid-cap segments with H shares, B shares, red chips, P chips and foreign listings of Chinese stocks.
Since the listing in 2016, PSBC has been listed in the Hang Seng Global Composite Index (HSGCI), Hang Seng Composite Index (HSCI), Hang Seng China Enterprises Index (HSCEI), etc.
As a constituent stock of the Hang Seng Composite Large Cap Index, PSBC has made the Hong Kong Stock Connect list and has been in effect.
All this reflects the market recognition of PSBC's long-term investment value.
“China currently faces economic transformation and upgrading, the deepening of financial reform and the rapid development of information technology. Against this background, PSBC will seize the new strategic opportunities, make better use of our advantages, enrich business varieties, broaden service channels, enhance service capacity and comprehensive competitiveness ,” a member of the bank's management staff said.
“We will provide more comprehensive and convenient financial services for customers, strive to become a large first-class retail commercial bank and provide long-term and sustainable returns for the shareholders,” he added.