As the most authoritative securities index, it is widely referenced by investors. Global investors, brokers, exchanges, portfolio managers, investment consultants, scholars and financial media will use MSCI index. It is also one of the most widely used investment targets for global portfolio managers. According to MSCI estimates, more than 90% of international stock assets are based on MSCI index, covering all sectors of large-cap, medium-cap and small-cap stocks.
Msci stock selection process
1, define the sample space. MSCI compiles indexes according to countries (or regions), and each company belongs to only one country (or region) for each country.
2. For each listed company in this country (region), determine the market value of the company's shares that international investors can freely buy and sell (free market value).
3. Classify listed companies according to global industry classification standards.
4.MSCI adopts the bottom-up method to construct the index, that is, at the industry level, stocks with large free-floating market value are added in turn, so that the free-floating market value of selected stocks in various industries reaches 85% of the industry.
5. Fine-tune the selected stocks in various industries, so that the free circulation market value of the selected stocks reaches more than 85% of the whole market.