Inclusion of A shares in global indexes may spur foreign capital flows, say analysts

Foreign capital may continue to flow into the A-share market as the widely-tracked global indexes start incorporating more Chinese shares, fueling a potential market recovery, analysts said on Monday.

FTSE Russell, a leading global multi-asset index provider, said on Saturday it would add 1,097 A shares - approximately 30 percent of all A shares and covering large to microcap shares - to its global benchmarks from June 21.

The inclusion marks the index publisher's first step to incorporate the A-share market and will be implemented in a phased-in manner, due to take effect in June 2019, September 2019 and March 2020, respectively.