Index giant MSCI has released its final list of A-share stocks to be included in its emerging markets index, less than one month before the inclusion begins. The list will lead to an increasing number of foreign investors allocating their money to China. Mi Jiayi has more.

MSCI revealed this morning that a total of 234 A-share stocks will be included in its flagship emerging markets index. The inclusion will take place in two stages, first by the end of May, and the rest by the end of August. Starting May 1, the Chinese government expanded the daily trading quota through the Shanghai-Hong Kong and Shenzhen-Hong Kong connects by four times. Data from Bloomberg show that in April alone, north-bound investment through the HK stock connects into China's A-share market reached a record of 40.5 billion yuan. And in the first eight trading days of May, the total foreign investment on the stock connects had already reached 42 percent of the April figure.

WILLIAM MA, CIO NOAH HOLDINGS (HK) "Because one of the concern previously for the MSCI include A-share into the stock indices is because of the capacity and visibility of opening up. Increasing the daily quota limit is actually a very good sign that the government is very proactive and listen to the market participant. So this is a really good sign."

The stocks chosen for the MSCI index have a combined market capitalization of $22 billion, and will represent a 0.78 percent weighting in the index. They come from a broad range of sectors, including banking, real estate, consumer goods, tech firms and healthcare. Those were just the sectors into which foreign investors had been putting their money anyway.

WILLIAM MA, CIO NOAH HOLDINGS (HK) "For example, the domestic consumption growth story is a very powerful one, and it's a growth story. When global allocators invest in a market, we believe that we are looking for growth and not value. Second, the consumption sector is relatively less correlated to the global economy, so it's rather sticky and long term."

Still, Shanghai investors expect MSCI inclusion to begin changing the nature of China's stock markets.

TAN JIALONG, SENIOR ANALYST ZENDAI GROUP "This is a very meaningful event. Before this, our stock market have been driven by individual retailers, which means they trade on speculation and concepts. In a mature market, investors value performance, liquidity and growth. More foreign investors coming in will definitely help change the investment style in the A-share market."

Ma says the overall valuation of China's A-share market is still only two-thirds that of the US market, which makes it very attractive to foreign investors like his company. It is expected that the amount of foreign capital entering the Chinese markets will only continue to grow after the MSCI inclusion.