China A shares set to get boost from MSCI inclusion

Tokyo

THE inclusion of 222 Chinese A shares in the MSCI emerging markets index, confirmed overnight on Tuesday in New York, takes the development of China's stock markets and renminbi internationalisation a significant step further forward, analysts say.

The decision to add the shares, including those of some Chinese blue-chip companies, to the internationally recognised benchmark index after three previous attempts failed was greeted as a symbolic victory for Chinese authorities.

As a result of the move, which was foreshadowed in The Business Times on Wednesday, institutional investors from around the world who track the MSCI emerging markets index will automatically include some Chinese A shares in their portfolio, along with those of other key …