Looking longer-term, MSCI inclusion is likely to spur further reforms. China's government is committed to further reforms, as shown by recent news on opening up the financial sector to foreign investors, increasing daily trading quotas on the Stock Connects, and potentially extending the Stock Connect program to London. As China opens further, we expect A-shares to account for a larger share of global benchmarks in the future.
Put together, MSCI's inclusion of a selection of A-shares in its benchmarks matters for a great many reasons. And, ultimately, it reinforces our view that reforms are profoundly changing China's economy and are continuing to create opportunities for investors.