Research On The Impact Of Including Mingsheng Index On The Internationalization Of China's Securities Market

On June 21,2017,MSCI announced the inclusion of China in the Mingsheng emerging markets index.This event has ushered in new opportunities for China's securities market,accelerated the pace of internationalization of the domestic securities market,which can be called a historic moment for the domestic securities market.The smooth inclusion of Mingsheng index will play an important role in both the market and investors,which means that the domestic securities market has gained the attention of international investors,including European and American countries,and actively participated in their cooperation projects.Mingsheng index is mainly composed of institutional investors in western mature markets.They are different from retail investors.Their investment behavior is rational,and they can also publicize correct and scientific investment ideas.These behaviors can affect the direction of investment in domestic securities market to a large extent,and are of great significance to promote the diversification of investment behavior in domestic securities market and improve the structure of investors.From the perspective of the international development of China's securities market,the impact of this event cannot be underestimated.First,I read many articles,introducing the meaning and characteristics of the internationalization of the securities market.Then,the paper combs the development process and promoting factors of the internationalization of the global securities market.At the same time,combined with the analysis of the internationalization process of China's securities market,it concludes that it will have great positive significance in changing the structure and concept of investors,promoting the standardized development of the market and accelerating the economic transformation.Secondly,it describes the development process and current situation of Mingsheng index,and explains its compilation methods from the aspects of consideration factors and relevant calculation methods.Then combined with the empirical analysis of South Korea and Taiwan's stock market into the Mingsheng index,it will attract long-term incremental capital into the market,enhance the linkage between China and the international market,and promote the internationalization process of China's stock market.Thirdly,the paper introduces the process of China's securities market's incorporation into Mingsheng index and the subsequent steps to enhance its weight.Then,the paper compares the deficiencies before and after the incorporation of Mingsheng index into China's securities market The analysis shows that Mingsheng index optimizes the investor structure and concept of China's securities market,improves the system of suspension and resumption of trading and cross-border trading,improves the quality of listed company governance and information disclosure,which will promote the internationalization of China's securities market.Finally,based on the actual situation of China's securities market and the influence of Mingsheng index,this paper puts forward suggestions to further promote the internationalization of China's securities market,launch more risk hedging products,improve the relevant financial system and improve the international competitiveness of securities companies.