Macro· Equity

China's A-share MSCI inclusion a significant milestone, MSCI CEO says

minutes 2018/06/01 03:05:22
MSCI,Shanghai Stock Exchange,Shenzhen Stock Exchange

Jun 01, 2018 (China Knowledge) - MSCI's Chairman and CEO, Henry Fernandez lauded the integration of China's financial market into the global financial system as one of the most important financial events in the first half of the 21st century. The impact of the integration of the world's second largest stock market and the world's third largest bond market into the global capital market will be enormous, he added in his speech at a ceremonial event in the Shanghai Stock Exchange (SSE).  In addition to the reform and opening up of China's capital market, the MSCI chief firmly believes international investors are offered a good investment experience in the process of investing in China. He hopes the Chinese A-shares can incorporate into MSCI on a larger scale with fewer steps.

Jiang Feng, general manager of the SSE and Li Hui, deputy general manager of the Shenzhen Stock Exchange (SZE) also delivered speeches at the event held after market closes on Thursday.

Jiang noted in his speech that the MSCI inclusion success is attributed to the buildup of investment channels such as QFII, RQFII, and Shanghai-Hong Kong Stock Connect, as well as the various trading mechanism. Emphasizing that the successful inclusion of China A-shares is “not the end, but the starting point”, he said that the inclusion signifies global recognition from international investors in the achievement made by China to reform and open up its capital markets. It is also symbolic that the Chinese capital market is expanding its international reputation and influence, he added. The SSE will continue to pursue market-oriented reforms and actively explore new models, new mechanisms, and new ideas for the internationalization of exchanges.  Moving forward, he pledged to promote China's capital market to a modern multi-level capital market that has both Chinese characteristics and global competitiveness and strive to build a world-leading stock exchange.

The deputy general manager of SZE, Li Hui also recognized that the introduction of foreign investors is an important way for China's capital market to promote reform through openness. The exchange plays an important role as the core institution and important platform of the capital market. The SZE will continue to promote systems and services in line with international standards and connect more extensive overseas investors with better products and services, he said in his speech.

Representatives from the Shanghai Municipal Government, MSCI, the Shanghai and Shenzhen Stock Exchanges, and representatives from about 80 domestic and overseas financial institutions attended the event.

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