Index’s China move

EQUITIES index compiler MSCI will today include mainland China-listed companies on its benchmark indices, giving many foreign investors their first exposure to Chinese shares.

The decision last year by MSCI to add more than 200 firms was seen as a victory for Beijing, which has pushed for years to have its equities recognised, as leaders look to expand the country’s global market influence.

The MSCI indices track constituent companies’ performances, which are then used as a guide for cash-rich foreign institutional investors (FIIs).

China has been gradually opening the door to its huge $7.4 trillion equities market -the world’s second largest after the US.