Capital market's reform dividends

At a time when international investors hope China will further open its A-share stock market, Morgan Stanley Capital International recently revealed its intent to include the market into the MSCI Emerging Market Index in the near future, though not necessarily this year, depending on the progression of Beijing's capital market reforms. This attracted attention from the international capital market.

The conditions set by MSCI meet market expectations, given that some technical considerations, such as an approval system for investment amount and restrictions on capital flows, have hindered the inclusion of China's A-share stock market in the international equities market index.

The higher attention from the international equities index to China's A-share stock market and their possible cooperation will be crucial to China further opening up its capital market. From a broad perspective, the healthy development of its capital market and the inflow of international capital will help further integrate China's economy in the world system.