SCI Announces That A Shares Have Not Yet Been Included In MSCI Emerging Market Index

On the morning of June 15th, SCI announced that A shares had not yet been included in the MSCI emerging market index. QFII's monthly capital redemption restrictions and A share financial products pre-approval restrictions had become the constraints of MSCI.

RemyBriand, managing director of MSCI and global research director, said that international institutional investors wanted to see further improvement in the market access of A shares before China's A shares were included in the MSCI emerging market index.

MSCI said it would delay the incorporation of A shares into China (MSCI).

Index, because three of the four main obstacles that the company has pointed out before is still to be overcome.

Reporter according to China

Official WeChat news, before today's morning, spokesman Deng Ge asked reporters' questions that "A shares have not been included in the MSCI index".

Deng Ge said that the decision to delay the inclusion of the MSCI Ming Sheng company will not affect the process of China's capital market reform and opening up and the direction of marketization and rule of law. Building a long-term stable and healthy capital market is our own needs.

At the same time, the fund company also issued a viewpoint for the first time. The South preferred value fund manager, Luo Shuai, said that the delay in bringing the A shares into the MSCI emerging market index itself has a short-term or a negative impact: one is the emotional impact, after all, the market has some expectations; two, some foreign investors have allocated A shares in advance for the sake of "card position".

It may be withdrawn as news announces.

However, Luo Shuai believes that the influence of these two aspects is mild and short-term.

Because even if this can be added, the impact of MSCI will be long-term and gradual. Taking the Taiwan stock market and the Korean stock market as an example, the two big stock markets will take 5-10 years from admission to full integration.

Moreover, with the volume and international status of China's economy, the deep docking with international capital markets is only a matter of time.

On the positive side, being "declined" will accelerate the further improvement of our capital market system.

The integration of A shares into the global financial market is still the general trend and will not change because of not being included in the MSCI index.

With the further growth of China's economic volume and the enhancement of its influence on the global economy and financial market, the participation of overseas investors in A shares will further improve in the future.

The degree of integration depends more on the construction of A share system and the degree of openness of China's capital account. The absence of MSCI does not change the medium and long term trend.

The southern fund suggests that investors should consider more from the fundamentals of the A share itself, not too much interference from the A MSCI incident. After all, the long-term economic trend is still economic fundamentals.

The macro strategy of the Kowloon Thai Fund believes that delayed incorporation has a short-term negative impact on A shares, with limited long-term impact.

In the short term, the funds for speculation in the early stage of the market are expected to fail.

Without joining MSCI, there is also a negative impact on investor sentiment.

But in the medium to long term, the market has already been expected this time may not be included, so the result is not entirely unexpected.

Even if it is included, the incremental funding is limited. It is estimated that the passive inflow of funds will be about 120 billion yuan in one year, which will have no real impact on the trend of A shares.