What is the impact of MSCI index on A shares?
The inclusion of A shares in MSCI Emerging Markets Index means that China, as the second largest market in the world, has finally got the most important ticket to enter the international capital market. The inclusion of A-shares in MSCI index reflects international investors' confidence in China's stable and promising economic development and sound financial market, which is beneficial for listed companies to obtain foreign investment support and bring incremental funds, which is good news for listed companies.
The entry of incremental foreign capital has also increased the proportion of institutional investors in A shares. In the game of diversified investment at home and abroad, the nationalization and marketization of A-share market will accelerate this process.
At the same time, it will accelerate the internationalization of the RMB. A large number of foreign investors participate in the A-share market, and global funds will come to China to allocate assets, which will naturally promote the internationalization of our RMB.
MSCI composite index is famous for its global market index, including frontier market composite index, developed market index, emerging market index and independent market index. By further summarizing these indexes, we get MSCI global market index-MSCIACWI, which is an index adjusted by free market value to measure the performance of global securities market.