What does MSCI's increased exposure to China A-shares tell us about the asset class?

MSCI has recently increased the Chinese A-share market's inclusion factor from 5% to 20%.

The move recognises the improving openness and accountability of this dynamic asset class. To our mind, barring a major strategic change in direction on China's side, this trend is only going one way - namely towards more openness and more representation in global indices.  What does a declining population mean for Japan? The move should increase China's standing among the investment community and drive fresh inflows into the A-share market. On the downside, there will be more people fishing in the pool, so good opportunities may become harder to come by. The key is to look beyond ...