A Shares knocking on international door
ANBOUND
The significance of A Shares being placed into the MSCI Emerging Markets Index and the global index, is not its short-term rise, but rather the opening of China's capital market entering a new stage, and that A Shares may be included in the international rules. This is a time for China to get into the international market, which would be a channel for the internationalization of the Chinese market. China's current stock market, and the size of its bond market rank the second and the third in the world respectively and there is a huge consumer market. Based on the huge actual industry, consumer market and financial needs, China is fully capable to develop significant influence in the global capital market. For China to develop a significant influence in the global capital market, it must promote internationalization, opening up, marketization, and the reform of the rule of law.