MSCI Shoulders The Task Of Saving A Shares.

For mature professional institutions, the overall attractiveness of A shares is not attractive at the present stage, and the proportion of initial allocation is still low.

Therefore, even if A shares are incorporated into MSCI, they can not be optimistic.

It is still very difficult to rely on MSCI to shoulder the mission of saving A shares.

As June approaches, the A share market is once again facing the test of whether it can be incorporated into the MSCI index.

At the same time, as the A shares are expected to be included in the MSCI index, the market is also concerned about MSCI related news.

Just recently, MSCI announced its adjustment to its China A stock index constituent stocks, of which 30 were new, excluding 14, and will take effect from the end of this May 31st business day.

There are a lot of blocking factors for the A share to be included in the MSCI index.

Among them, market openness, tax regulations and stock market liquidity are one aspect, and stock market policy and market administration.

And other factors also affect the actual process of A share's incorporation into MSCI.

For example, in recent years, China has not only continued to relax the QFII quota, but also made concessions to tax regulations and other factors.

In addition, the promotion of Shanghai and Hong Kong links and Shenzhen Hong Kong links has given more attention to the market, and this series of work actually adds weight to A shares in MSCI.

However, in the future, for example, the uncertainty of stock market policy and the continuous enhancement of market administrative intervention in recent months have increased the uncertainty expectation of A shares in the MSCI index to a certain extent.

At the same time, as a mature foreign institutional investor, investing in China's A shares under a typical policy market environment may still have some uncertain risks.

For the MSCI index, its investment orientation and decision-making changes will affect the operation strategy of global investors to a large extent.

As a result, when MSCI announces that China's A shares will be adjusted, it will also affect the rhythm of some investors in the market.

In fact, review

The inclusion of the MSCI index is not easy.

Among them, since the A shares were first selected as the "list of potential market watchers" in June 2013, the A share market in 2014 and 2015, though many efforts have been made, A shares have not yet been included in the MSCI emerging market index.

However, after nearly a year's time, and soon to the critical point of June, whether A shares successfully incorporated into the MSCI index will undoubtedly become the focus of global investors' attention.

It can be seen that at this stage, if A share is successfully incorporated into the MSCI index, we should not only speed up the corresponding supporting measures to meet the requirements of the MSCI index, but also need to gradually reduce administrative intervention in the market, and at the same time, we need to respect the rules of market operation and let the market complete its own benign adjustment, so as to dispel the anxiety of foreign mature institutional investors.

In addition, there is a factor which is also deeply puzzled by mature foreign institutional investors.

Specifically, the valuation level of the A share market is still relatively large. From the median valuation of Listed Companies in the A share market, it is easy to weaken the investment confidence of foreign mature institutional investors.

Among them, for the current A share market, although there are tens of trillions of circulation market value, and some weight stock valuation level is still lower than the average level of foreign mature market, but because of this kind of

The weight of the share market is relatively large, which makes it easy to drag down the valuation level of the listed companies in the whole market, and is easy to cause the market to be deceived on the low valuation.

However, from the more detailed data, the median level of the A share market is much higher than that of the mature market abroad, and the domestic policy environment is rather uncertain.

As a result, it has more or less reduced the enthusiasm of foreign mature institutional investors in long-term investment.

However, it should be noted that although A shares can be included in the MSCI index, there is still some uncertainty.

However, if the A share market is finally fortunate enough to be included in this index, it will not be too optimistic about the new liquidity brought to the market at the early stage.

Indeed, for mature professional institutions, the overall investment attractiveness of A shares is not attractive at the present stage, and the proportion of initial allocation is still low.

Thus, even if A shares are included in MSCI, we may not be optimistic.

Obviously, for the A share market dominated by policies, it is still very difficult to rely on MSCI to shoulder the mission of saving A shares.