MSCI decision: Small waves or the beginning of bull market?

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01:58

Global index provider MSCI will increase the inclusion factor of China's large-cap A-shares from five percent to 20 percent. China Merchants Fund expected A-share market to reach 220 billion U.S. dollars in total capital volume.

Jameel Ahmad, global head of currency strategy and market research at FXTM, commented that the latest move adds a positive sentiment for A-share market, saying that the market can benefit the economy in mid- to long-term.

Ahmad said that apart from domestic news, what influences the yuan a lot are external circumstances, something like dollar weakness, adding that the yuan in March will keep its good February momentum.

03:15

All this should give investors in China's markets a more mature profile. Wang Jianhui, the general manager of the R&D department at Capital Securities, said it seems to be bull market at least in technical terms.

“Before the end of March, the market will become a little bit quiet. People are waiting to see whether the Sino-US trade talks will be more fruitful and whether the first quarter financial report of listed companies will transmit some positive signals and whether the economy will bump up. Until then, I think the market is still fluctuating although on the higher level,” Wang noted.