Around 70% of the nearly 230 mainland-traded stocks joined MSCI’s emerging markets and global indexes on Friday.
China’s inclusion into the MSCI Emerging Markets Index on 1 June 2018 has sparked a wave of excitement for foreign investors, but how active will they be as the market opens up and can the infrastructure handle the incoming trading volumes?
MSCI includes 222 of China’s A-shares within its Emerging Markets index after several years of waiting.
China’s A-Shares were again not included in the MSCI’s Emerging Markets Index in 2016 and latest reports suggest more work is required for inclusion.
Despite expectations that MSCI would include China in its key benchmarks this year being dashed, HSBC says there is still much to be hopeful about.