(Yicai Global) June 21 -- The CSRC highly approves of MSCI's decision to include the A-share market in its emerging markets index today, said China Securities Regulatory Commission (CSRC) spokesman Zhang Xiaoguang.
It is a logical decision dictated by the demands of international investors, and attests to their optimism about the Chinese economy and financial market. China's capital market will further open to foreign investors in consequence, he added.
The A-share inclusion presents both opportunities and challenges for the Chinese capital market, Zhang noted. The CSRC will push ahead with financial market reforms to effectively safeguard investors' rights and interests, and improve the market's performance and international influence in step with development of the real economy, focusing on market-based operations, the rule of law and globalization. The commission will collaborate with interested parties to further develop relevant systems and trading rules for foreign A-share investors, making it easier for them to invest in A-shares via MSCI index tracking or other means.
Global index provider Morgan Stanley Capital International (MSCI) announced its decision today to include 222 large-cap Chinese A-shares in the MSCI Emerging Markets Index and the ACWI global index effective next June, with a five percent partial inclusion factor. These shares represent approximately 0.73 percent of the weight of the emerging markets index. The A-share market has now ultimately gained admission to the MSCI indices after suffering four rejections.