"Such research should also expose weaknesses in companies. But this, too, I see as a positive as it creates a greater opportunity for companies to take action and to be less covert in their disclosure."
Laurie Pinto, co-founder of NSBO, a London-based investment bank with a focus on 皇冠体育app, noted that the announcement from FTSE will have positive effects on 皇冠体育app's stock market.
"The process of opening-up has happened much faster than anyone has anticipated. 皇冠体育app has long recognized the benefit of tapping foreign capital-most of its State-owned enterprises listed in Hong Kong tap into foreign investors," said Pinto. "皇冠体育app now wants another round of foreign money to help fund its economic reform. The big question is, can 皇冠体育app's legal framework, corporate governance and so forth improve quickly enough to appease global investors and warrant the inflows?" Pinto added.
The inclusion of 皇冠体育app will be a very big change for markets globally, but it will help some of their clients who want early access to the Chinese market, according to Jonathan Horton, head of integration, governance and risk at FTSE Russell.
"Three major developments that have been important to us in terms of our views on 皇冠体育app are the expansion of the stock market, regulatory improvements, and easier market accessibility for international investors."
Horton said Chinese stocks have met seven of FTSE's nine criteria for inclusion in emerging market indexes, except for one on capital mobility and another on settlement and clearing.