Looks like the Chinese stocks have to wait bit more before getting merged with MSCI Inc. The Morgan Stanley Capital International has to co-operate with national security regulator to clear off all the obstacles in adding stocks from mainland to index. The Yuan-dominated equities will be added to MSCI index soon and to be called as A shares. The China Securities Regulatory Commission will also help the MSCI to address all logistical, ownership and accessibility concerns by investors.
The global benchmark index will be one of its kinds. The MSCI informed about the development in a press release, which told press to expect the decision of merger at any date. The mainland market status should be recognized worldwide because this will kick-start the future of Yuan as an international currency. There the Chinese government is more than eager to support this MSCI inclusion. The Chinese currency Yuan is known for all wrong reason as of now such as currency manipulation, depreciation etc.
The $6.5 trillion worth investment has been earned due to opening of Chinese share to foreigners. The financial tie ups with more open markets like Hong Kong are proving to be helpful. The tie up with MSCI will establish the link with whole world. The global standing will invite the investments from world over. The experts are predicting that this deal is bound to happen but not sure when. The fund managers have mixed opinion about the merger of Chinese stocks on MSCI global indexes. This is the sign of massive economic development in China.