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On May 31, 2018, Shanghai Stock Exchange (“SSE”), Shenzhen Stock Exchange (“SZSE”) and MSCI co-held in Shanghai the launching ceremony on MSCI’s inclusion of A-shares, witnessing the addition of A-shares to MSCI’s Emerging Market Indexes.
MSCI announced in June 2017 that it shall officially introduce partial A-shares to its Emerging Market Indexes in June 2018. MSCI is the most influential index provider in respect of global asset allocation. The inclusion of A-shares into MSCI’s indexes is a milestone of the globalization of China’s capital market, fully reflecting overseas investors’ confidence in the prospects of China’s stable and sound economy and healthy capital market. The inclusion plan released by MSCI shows that 81 stocks in Shenzhen market representing market capitalization of about CNY5.8 trillion shall be added to the sample stocks of MSCI’s indexes.
SZSE, closely following the global capital market as it develops, and dedicated to serving the real economy and the overall national strategies, directs much efforts to supporting enterprises with new technologies and new business modes and in new industries and new industrial formats in recent years, and has become an important emerging market of global influence, as pointed out by an officer from SZSE. At the end of May, 2018, of over 2100 companies listed in SZSE, high-tech firms account for more than 70 percent, while strategic emerging companies over 50 percent. Innovative high-tech firms listed in SZSE have become a unique type of assets that is highly recognized by overseas investors, attracting a growing number of international investors desiring to share the results of China’s economic restructuring by investing in companies listed on SZSE. Meanwhile, SZSE keeps a close eye on the demand of overseas investors and concerns of the market, making continuous efforts to integrate its systems and services with the world. SZSE tries to reach and connect with a wider group of investors domestically and overseas with better products and services by organizing extensive Shenzhen-Hong Kong Stock Connect global roadshows, pushing forward the construction of the management mechanism for overseas investors of listed companies, improving English information services generally, and developing green financial products.
An officer from SZSE expressed that, the addition of A-shares to MSCI indexes meets the investing demand of overseas investors, and provides a sound platform for the internationalization of the capital market in China as well as an important opportunity for SZSE to advance the process of internationalization. Next, SZSE shall, under the guidance of China Securities Regulatory Commission, continue to implement overall strict supervision and regulation, improve its risk prevention and control abilities, and maintain the smooth operation of the market. On this basis, SZSE shall step up international cooperation, integrate its systems and services with the world, optimize the construction of overseas investor service system, and greet overseas investors in a more open manner. Besides, SZSE shall improve its abilities on the technical side, be well-prepared for a diversified market-connecting mode or product cooperation, and creates a healthy investment environment for domestic and overseas investors, making itself a bridge that connects overseas investors and high-flying listed companies in China.
