— This is the script of CNBC's news report for China's CCTV on June 8, Monday.
Index giant MSCI will announce on Tuesday its much-anticipated decision on whether to include China's A shares in its emerging market index.
Adding China A-shares into the MSCI Emerging Markets Index could supercharge a roaring rally in Chinese shares by boosting the weighting of Chinese stocks in an index currently tracked by some $1.7 trillion of assets.
In a statement, MSCI said that it will unveil the decision of whether to include A-shares "shortly after" 5 p.m. New York time on June 9, on its website.
Passive investors who track the benchmark are expected to increase their Chinese holdings once A-shares are included.
[Mikio Kumada, LGT Capital Partners] "08:15:24 Index inclusions are good things but they are not fundemental or strategic or a longer term reason to get exposure of a market. At the end of the day, it's down to earnings growth, evaluations and whether liquility is coming to the market. 08:15:41"
[Erwin Sanft, Macquarie Capital Markets] "09:33:21 I think this year is all about, still, as we've been saying, about making money in China equities. For whatever problems await us, they are certainly not things we will encounter this year, so I mean, yea, you stay over in China equities, particularly in smaller cap and on the property sector. 09:33:40"
China makes up only about three per cent of the MSCI AC World Index, for example, despite having the world's second-largest economy.
Mat Lystra, director of international indexes methodology at Russell Indexes, once said, "China is the last great frontier. It is an incredibly large, diverse market and it will be important and impactful when it begins to be added to global benchmarks."
If MSCI accepts Shanghai on Wednesday (Beijing time), A-share will get one step closer to dance on the global stage.
CNBC's Qian Chen, reporting from Singapore.
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