Foreign investors flock to A shares

Completion of MSCI index inclusion, positive outlook help funds exploit cheap valuations

Overseas investors' interest in the Chinese stock markets has reached record highs in the wake of the opening-up policy and the A shares' inclusion in the Morgan Stanley Capital International's emerging markets index.

On Sept 1, MSCI completed the phased inclusion of A shares in its popular index. Now, 5 percent of A shares, or 236 key stocks, are part of the index.