MSCI move shows confidence in market

In a thumbs-up for China's financial market opening-up, evidenced by improving stock market accessibility, global index provider MSCI was due to increase the weighting of Chinese shares in its indexes from Tuesday.

The inclusion factor for large-cap A shares was to be raised from 15 percent to 20 percent, while mid-cap A shares, including Nasdaq-style ChiN-ext shares, with a 20 percent inclusion factor were also to be added.

The inclusion factor is used to represent the proportion of the market capitalization of China A shares included in the pro forma MSCI China Index. The move marks the completion of a three-step plan by the index compiler to increase the weight of A shares in the MSCI indexes, which has already seen it raise the inclusion factor twice.