China hails MSCI inclusion

This article is more than 12 months old

SHANGHAI: China yesterday hailed the decision by index compiler MSCI to include it in its key emerging markets list, saying it was a sign of confidence in the world's No. 2 economy.

The agreement to admit mainland-listed big-cap stocks - allowing them to be traded by foreigners directly for the first time - comes after three failed attempts.

Analysts said inclusion on the Emerging Markets Index could lead to up to US$12 billion (S$16 billion) of inflows as many overseas investors measure the performance of their portfolios against MSCI indexes and are obliged to buy shares in them.

"We applaud and appreciate MSCI for making such a decision," said spokesman for the China Securities Regulatory Commission Zhang Xiaojun.

MSCI said the move has "broad support" from international institutional investors, and was the result of the loosening of restrictions enacted by China on foreign ownership of "A" shares - yuan-denominated stock in mainland China-based companies. - AFP

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