There are only two days left for A-shares to be formally included in the MSCI emerging Markets Index. Chairman and CEO Henry Fern á ndez returned to Beijing for the final preparation and communication before A shares were incorporated into the MSCI. In an interview with the media in Beijing yesterday, he said A shares could smoothly and smoothly incorporate the MSCI index as a consensus expectation.
After the A-shares were first included in the MSCI two-phase work in September this year, Alumni hopes that the future MSCI index will be included in the A-shares "step by step bigger."
"the integration of China's financial system into the world financial system is inevitable. The question is only how fast and in what form." Henry Fern á ndez said China is already the world's second-largest economy, with the world's second-largest stock market, and it is unthinkable that such an economy would not fit into the world.
He believes that the biggest event in the global economy over the past 30 years is the gradual integration of China's real economy into the world economy; in the next 10 years, the biggest event in the global economy will be the integration of the Chinese financial system into the global financial market. He said that the formal inclusion of A-shares in MSCI will bring a steady stream of capital to the Chinese capital market and that more international capital will enter the Chinese market in the future.
Henry Fern á ndez said the company would carry out two key tasks after the first two-stage inclusion of A shares into MSCI, starting in September.
The first is to fully understand and measure the investment experience of international investors, including whether investors can successfully buy and sell A shares of interest, and whether they can adapt well to the particularities of the A-share market, including limited daily transactions. , investment targets can not cover the entire market, listed companies still exist suspension issues.
The second is to maintain communication with regulators to understand the next step in China's opening up of financial markets and securities markets, including schedules, speeds, timetables, and expectations of decision-makers to open financial markets.
He said that he hopes that the process of incorporating the MSCI index into A-share stocks in the future will no longer use small-scale expansion and small-scale weightlifting, but rather “steps can be made even bigger”. For example, it may be considered that the inclusion factor of 233 stocks included in MSCI's A-shares may be increased, or that adding mid-cap stocks at the same time can increase the factor of inclusion and no longer increase the number and weight of stocks slightly.
"but it still depends on the trading experience of investors after A-shares are formally incorporated, as well as feedback from management and so on." Henry Fern á ndez says A shares are a new investment area for international investors. There are more than 850 MSCI emerging market index components, and on June 1 there will be 233 A-shares, if the next step is to include mid-market stocks. The number of stocks in the entire emerging market index is expected to rise to 1200, of which about 600 are A-shares. "in this case, whether investors can keep up with the pace of exponential expansion, especially in terms of their research and the ability to make investment decisions, is also a very important consideration," he said.
In addition, Henry Fernandez noted that the inclusion of A shares in the MSCI index was strongly supported by the China Securities Regulatory Commission, the Shanghai and Shenzhen exchanges and the Hong Kong Stock Exchange, and was the result of a concerted effort. He spoke highly of the efforts made by China's regulators and the Shanghai and Shenzhen exchanges, noting that the smooth and smooth integration of A shares into the MSCI was a consensus expectation from all sides, including the company, regulators and investors.
All of the 233-A-share companies that were first included in MSCI are subject to ESG-ESG-based (environmental, social and corporate governance) reviews, and substandard companies will be eliminated, Henry Fernandez responded. Overseas investors are concerned about the governance of A-shares, but this is not directly related to the inclusion of A-shares in MSCI. (source: Shanghai Securities News)