The bourse is not cheaply valued - its 12-month forward price-earnings ratio is 13.9, while the MSCI Emerging Market Index is at about 12 - and the economy faces hard times in the next few years.
While the CSI300 has lagged a global stock rally so far this year, it had surged almost 8 percent since mid-May, partly on expectations of the MSCI decision.
Chinese shares have finally been given the go-ahead to enter the MSCI index, a key victory for a Chinese government who have been working for several years to open its markets to foreign capital.
MSCI said it planned to add the 222 stocks - which would have an initial weighting in the index of just 0.73 percent - and would begin a review of the "A" shares and include them in provisional indexes beginning in August.
"Today's decision is an important step towards full inclusion and implementation of the decision will be aided by continued progress on market reforms".
"The second largest market in the world with a total market cap of $7 trillion and daily trading volumes oscillating between $50-200 billion which are completely dominated by domestic investors, will hardly notice the $12 billion of inflows the MSCI decision implies in 12 months-time", Hirn told Sputnik through an email.
It's a measured move that will build confidence in the global community and encourage even more cooperation from the Chinese.
"We are happy to see it", Zhang Xiaojun, a spokesman for the China Securities Regulatory Commission, said in a statement on the agency's website.
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Central to this is the right to bring a non-EU spouse to Britain, which, when she was Home Secretary, Mrs May made more hard for Britons.
USA index provider MSCI said on Tuesday it would add mainland Chinese stocks to one of its key benchmarks, but shocked many emerging market investors by failing to upgrade Argentina from the frontier market category where it has languished in recent years. This was mainly due to the expansion of the Stock Connect between HK to both Shanghai and Shenzhen.
China on Wednesday hailed the acceptance of its stocks in a leading US-based index of emerging market shares as a signal of confidence in the Asian power's economy after three previous rejections.
Since then, Chinese regulators have been working hard to improve foreign investors' accessibility as well as taking action to prevent dramatic market sell-offs, as witnessed in 2015.
Investors can already access Chinese domestic companies via listings on exchanges in Hong Kong, Singapore, the USA, and the UK.
"In a ten year view, this decision is very significant". South Korea's KOSPI index .ks11 dropped as much as 1 percent after the announcement, but pared losses to 0.5 percent. while Taiwan shares initially fell 0.5 percent but recovered to trade close up 0.24 percent.
Moody's writes: "The MSCI inclusion is significant in that it will pave the way for global capital inflows into China's A-shares by linking them to the most dominant trend in asset management - the increasing adoption of low-priced passive index funds".
Finally, the decision on the potential removal of the Nigeria index from the Frontier Markets index has been delayed to November 2017 to allow more time for worldwide institutional investors to better assess the effectiveness of the new FX trading window introduced by the Central Bank of Nigeria.
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