For those A-share large-cap stocks that have been selected, joining MSCI is good news.

MSCI is the main index referenced by more than 90% of institutional investors in the world. There are a large number of index funds around the world. When these funds track the MSCI index, they will inevitably invest in component stocks.

MSCI estimates that there are currently approximately US$10.5 trillion in global funds tracking the MSCI Index, and approximately US$1.6 trillion in funds tracking the MSCI Emerging Markets Index.

According to the announcement, MSCI plans to initially include 222 large-cap A shares.

Based on an inclusion factor of 5%, these A shares account for approximately 0.73% of the weight of the MSCI Emerging Markets Index.

In other words, by 2018, after China's inclusion in MSCI, the short-term incremental funds brought by A-shares into MSCI will be nearly 80 billion yuan. It will still take a long time to fully include 5% of the total from the initial inclusion.

In the medium and long term, the static estimate of overseas capital inflows brought about by the full inclusion of A-shares is about US$180 billion, passive funds of US$13.45 billion, dynamic estimates of about US$296.9 billion, and passive funds of US$22.185 billion.