'A' shares get MSCI nod in landmark moment for China's markets

NEW YORK/HONG KONG (Reuters) - China's stocks took a major step towards global acceptance on Wednesday, finally winning a long campaign for inclusion in a leading emerging markets benchmark, in what was seen as a milestone for global investing. U.S. index provider MSCI said on Wednesday Hong Kong time it would add a selection of China's so-called "A" shares to its Emerging Markets Index after having rejected them for three years running. Inclusion in the index marks a key victory for the Chinese government, which has been working steadily over the past few years to open up its capital markets, investors said. Future & Option Trading Tips

"Given the size and importance of China as an economic superpower, I think this is a historic moment," Kevin Anderson, senior managing director of State Street Global Advisors and head of investments in the Asia Pacific region told Reuters on Wednesday. "It's a long-awaited and much-debated decision in the past, and I think it's more than symbolic as it will create additional flow of capital and potentially a new segment of institutional investors in the China market." Financial Astrology Tips

Traders said MSCI's widely-expected "Yes" decision had been largely priced in, with the announcement triggering some profit-taking in blue-chips, which are no longer cheap after strong rallies this year. Shanghai shares opened just 0.3 percent higher, and turning negative shortly after opening. MSCI has been in discussions with Chinese regulators and global investors for four years over whether to add yuan-denominated shares to the Emerging Markets Index - tracked by around $1.6 trillion in assets - but excluded them because of restricted access to China's equity markets. Astrology and Numerology Trading Tips