SINGAPORE (May 28): MSCI recently announced that a total of 234 Chinese A-shares will be included in several of its benchmarks from June 1. This was major news in China both for its symbolic and practical implications.

Outside of China, the news was overshadowed by a slew of tweets on trade and Korean negotiations. This is unfortunate because the inclusion has profound implications for capital flows, for unsuspecting investors in retirement funds and for investors who are more personally involved in markets.

Western financial media gives limited coverage to the details of China markets and this obscures their importance. Many people believe China’s financial market size lies somewhere between that of Germany and France — important, but not significant.  

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