SHANGHAI: China on Wednesday hailed the decision by index compiler MSCI to include it in its key emerging markets list, saying it was a signal of confidence in the world's number-two economy.
The agreement to admit mainland-listed big-cap stocks -- allowing them to be traded by foreigners directly for the first time -- comes after three failed attempts as China's leaders aimed to expand its global market influence.
Analysts said inclusion on the Emerging Markets Index could lead to up to $12 billion of inflows as many overseas investors measure the performance of their portfolios against MSCI indexes and are obliged to buy shares in them.
"We applaud and appreciate MSCI for making such a decision," said Zhang Xiaojun, spokesman for the China Securities Regulatory Commission.
"It showed international investors' confidence in a stable Chinese economy with better prospects and in the steadiness of China's financial market," Zhang said.
MSCI's nod also comes after the domestic market was rocked by painful plunges in 2015 and 2016, and a liquidity crisis fuelled by Beijing's recent efforts to tighten credit over concerns the country's massive debt could trigger a financial meltdown.
The benchmark Shanghai Composite Index closed up 0.52 percent while the Shenzhen Composite Index, which tracks stocks on China's second exchange, finished 0.43 percent higher -- both bucking a downturn across the rest of Asia's markets.
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