BlackRock sees A shares as magnet for global funds

Morgan Stanley Capital International's inclusion of A shares in its widely tracked indices - starting from next summer - could be a catalyst for leading global investors to pile into the Chinese mainland's onshore markets despite concerns about liquidity, according to heavyweight analysts at the world's largest asset manager.

Wenjie Lu, who joined BlackRock in February as the China investment strategist and was previously with UBS Securities, said flows into mainland's equities were still expected in the second half of this year.

But, the strategist added, the liquidity of the A-share market was an issue as China's financial leveraging will continue and A-share market will take time to attract more fund flows.