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Economy

China makes MSCI breakthrough with Stock Connect boost

Index provider forecasts an initial inflow of $17 to 18 billion

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People pose next to the Charging Bull statue at the financial square on the Bund in Shanghai.   © Reuters

HONG KONG -- China's onshore equity market finally won its way into MSCI's major indices after being rejected for three years.

The New York-based index provider said the inclusion, which had "broad support from international institutional investors," was largely the result of greater accessibility to the China A-shares market via the Stock Connect program and the loosening of pre-approval requirements by local stock exchanges that can restrict the creation of index-linked investment vehicles.

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