MSCI can make A-shares a boon for investors
Since 2013, when MSCI, a United States-based provider of equity, fixed income, hedge fund stock market indexes, announced that it would consider the inclusion of China A-shares into its MSCI Emerging Market Index, China's equities market has undergone significant change. For example, the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, launched in 2014 and 2016 respectively, provide overseas investors with access to more than 75 percent of China A-shares in terms of market capitalization.
In March 2017, the MSCI reopened its annual consultation on A-share inclusion. An affirmative outcome would not only be a major milestone for China's capital markets but also provide unprecedented benefits for global and onshore investors.
In June 2016, when the MSCI announced it would not include China A-shares, it made the following recommendations:
