(Yicai Global) June 22 -- MSCI Inc.'s [NYSE:MSCI] inclusion of A-shares in its emerging markets index and global benchmark index is indicative of positive attitudes towards the Chinese market, Shanghai Stock Exchange President Shi Donghui said.
"The decision made by MSCI to include A-shares reflects favorable expectations of international investors for the prospects of China's economic growth and stable financial market, shows trust in China's ability to firmly push economic globalization and integrate with the global financial market, and demonstrates high approval for the reform and opening-up of the Chinese capital market in recent years," Shi said.
The addition of A-shares to the MSCI Emerging Markets Index is an important step in the internationalization of China's stock market and will profoundly influence the flow patterns of global capital, Shi told Shanghai Securities News.
China has developed to the second largest economy in the world, Shi said. Mainland China's stock market is worth about USD8 trillion, accounting for 10 percent of global stock market value. The country's stock market is the second largest in the world. International investors are increasing interested in adding Chinese secutiries to their portfolios.
The Shanghai Stock Exchange will strengthen front-line supervision and protect the legal rights of investors, said Shi.
Based on preliminary estimates, stocks on the Shanghai Stock Exchange account for about two-thirds of the 222 securities MSCI plans to incorporate and account for roughly three-quarters of their value.