MSCI national index is weighted by free float-adjusted market capitalization. MSCI defines free circulation as the proportion of tradable shares that international investors can invest in the public securities market, and uses the total circulation deduction method to strategically hold some shares that investors and other shareholders think are not free circulation, and considers the restrictions on foreign investors holding shares in the market. MSCI uses a graded and progressive free liquidity factorization to adjust the liquidity.

the possibility of China being included in MSCI index (1) the basic situation of the securities market and the compilation of MSCI index. If the minimum size limit (US$ 1 million) of selected sample stocks set by MSCI is followed, all stocks meeting this condition will account for less than 5% of the domestic securities market, which is far from the target of 85% set by MSCI. However, considering that the standard was formulated in 21, the market value of stocks has generally declined recently. If the minimum size of sample stocks of MSCI China Foreign Free Investment Index (464 million yuan) is taken as the benchmark, the total size of qualified stocks will account for 72.66% of the market, which is close to the target set by MSCI. With the listing of large-cap stocks of state-owned enterprises and the continuous relaxation of restrictions on foreign investment, it should not be difficult to meet or approach the quantitative stock selection index set by MSCI. (2) The possibility of China being included in MSCI index. Does MSCI include a country in the emerging market index system and compile its national index? Mainly consider the Gross Domestic Product per capita (GDP), market depth (market depth) and market liquidity (liquidity), local government regulation, Perceived investment risk, foreign ownership limits and capital control for foreign investors, With the general perception by the investment community and other factors, China's per capita GDP has reached a certain level and developed at a high speed (it can be seen that per capita GDP is not an obstacle to compiling the index by MSCI). From the above, it can be seen that the foreign investment capacity of China's securities market is also large and the liquidity of the domestic market is good. Therefore, at present, the main obstacle to China's inclusion in MSCI index is not quantitative factors such as scale, but some institutional factors such as domestic investment environment and policies, such as non-circulation ratio, access to basic information, restrictions on foreign investors' shareholding ratio, information disclosure quality, corporate governance, regulatory policies, capital account liberalization, exchange rate and so on. With the continuous development of China's securities market and the continuous improvement of the degree of opening to the outside world, more and more foreign investors will invest in China's securities market. As the most famous international index compiling company, MSCI will naturally not ignore the China securities market with great potential. MSCI has always attached importance to the China market. In order to meet the investment needs of investors in Asia, especially in Greater China, on June 1, 2, MSCI announced that it will provide two new Asian regional indices: MSCI China and Golden Dragon Index. The Chinese index consists of MSCI China Foreign Free Investment Index and MSCI Hong Kong, while the Golden Dragon Index consists of MSCI China and MSCI Taiwan Province (the weight of Taiwan Province market is 65%). A country has such an important position in the MSCI series index that it is unprecedented in the MSCI index. The scale and system of China's current securities market are larger and more perfect than that of Taiwan Province in 198s. With the opening of the domestic securities market, MSCI will launch the MSCI domestic securities market index to meet the needs of investors. We should also actively promote China's securities market and promote the early realization of this process. However, in order to promote the implementation of QFII and accelerate the internationalization of China's market, it is only one of the means to include China's market in MSCI index. The key is to do a good job in China's own index and index products, including the experience and lessons of Hongkong, Singapore, Taiwan Province and other markets. It is a major issue related to the long-term development of the market to establish an authoritative index system.