Inclusion confirms China's reform progress
More than that, MSCI's inclusion of A-shares in its indices confirms China's recent progress with economic reform. Up to now, we feel that many global investors haven't fully recognized this fact.
Now that inclusion has happened, investors will realize how far programs like the Shanghai and Shenzhen Stock Connects have gone to integrate China's onshore markets with the global financial system.
More opportunities for investors
Reforms have improved access but have also created opportunities. Now that A-shares are part of MSCI's indices, investors who follow the benchmark closely will have to allocate to the names included.
While, in a sense, that makes A-shares a mandatory investment, it also means investors - particularly passive operators - have a greater choice of names to invest in within the China equity space.