MSCI adds China-listed stocks to index in long-awaited move
MSCI's indexes are closely followed by fund managers and the move could draw more foreign investment to Chinese firms, though analysts said they didn't expect an immediate flood of money because the two-phase implementation is still a year away.
To address those concerns, it's only adding shares available through two cross-border trading links that have opened up since 2014 between Hong Kong's stock market and exchanges in Shanghai and Shenzhen on the mainland.
The Emerging Markets Index covers 830 companies in 23 countries, with Chinese companies traded overseas already accounting for the biggest share at 28 percent through Hong Kong-listed stocks such as PetroChina and New York-traded shares like Alibaba.
The Chinese securities regulator welcomed the decision and indicated mainland markets would open wider to foreign investors but gave no details or time frame.