Enlightment Of A-share Market Internationlization From Joining MSCI EM Index

China A share market is a very important part of China capital market.Recent years,as global capital market integration go further,A share market becomes the most important position of Internationalization of the whole Chinese capital market.Since 1980 s when China first created the security market,after continuous / and development,the process of internationalization had been continuously speed up,and the internationalization level had been increased.The integration of global capital markets has played an increasingly important role in the economic development of all countries.In July 2017,world famous index company MSCI officially declared that it would add Chinese stocks of A share market to its emerging market index(MSCI EM).The inclusion is an Extraordinary significance to China A share's internationalization.According to experiences of other emerging market economics joining the MSCI EM,the process of China A share market internationalization will be greatly accelerated in the future.The opening degree of A share market to foreign investors will also gradually improve until fully liberalized.China is the second largest economy in the world,and A-share's market size is among the top in the world.However,there is a certain gap between China's A share market and developed stock market,which is a fact that we must admit.Whether the A share market can adapt to the requirement of internationalization,and can stand the test of market and investors while opening the system of access,ensure stable and healthy operation and play its due role in the process of economic development of our country,will be an important subject in the road of future development of China's securities market.Taking the case of the Chinese A-share market into the MSCI EM market index as the starting point,this paper analyzes the reasons for the eventual success and three years' failures in applying for joining the MSCI EM,and the problems of the A-share market exposed in the process,such as the lack of marketization,the low market efficiency,the asymmetric information of participants,and the system loopholes,imperfect laws,etc.Using the experience of MSCI in Korea and Taiwan,which are the four small dragons of Asian economy,taking South Korea stock market as the dominant factor,using DCC-GARCH model and taking the South Korean comprehensive index and the standard & Poor's 500 index as an example,this paper analyzes the impact of the emerging stock market being brought into the MSCI EM index,the emerging stock market and the developed stock market.The degree of convergence between the fields and the decisive factors that affect the degree of integration,and combined with the current situation,as well as the future development goals and opportunities,so as to provide the suggestions for the China A share market development.