China has been slowly opening the door to foreign investors, and it may soon get even more global exposure at a time when its stock markets are sizzling hot.
Index giant MSCI announces Tuesday its much-anticipated decision on in its $4 trillion emerging market index. Inclusion in the index would unleash a flood of buying of the mainland-listed shares by funds that track the MSCI as a benchmark for emerging markets. (Tweet This)
"Given the IMF is also expected to decide on the Chinese yuan's status as a currency to be included in Special Drawing Rights (SDR), A-shares' inclusion in the MSCI EM could mark 2015 as a 'coming of age' for the Chinese financial system," said Tai Hui, chief market strategist for Asia at JPMorgan Funds.