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_ — This is the script of CNBC's news report for China's CCTV on June 10, Wednesday._ Welcome to CNBC Business Daily, I'm Qian Chen. MSCI said on Tuesday it expects to include
China A shares in its emerging markets index after several issues are resolved. The firm said it may announce the decision outside of its annual review, which usually occurs in June. The
issues highlighted included quota allocation process, capital mobility restrictions and beneficial ownership of investments. Investors told MSCI they need the ability to invest in China
relative to the value of their assets under management, the release said. Daily liquidity is also critical for fund management. _[Alka Banerjee, MD, S&P DOW JONES INDICES] "So there
are all these issues that asset managers and asset owners have to deal with, which create this very very confusing and still very difficult part to drive us to get this complete capital
repatriation as well as getting into this index. If you have a big weight, or even of 3 or 4 percent of the weight in the index, you have to have complete accessibility and liquidity."
_ MSCI's emerging market index currently has a 25 percent exposure to China through Hong Kong-listed stocks, known as H-shares. Full inclusion is expected to boost the index's
exposure to China to 37.5 percent. Alka Banerjee, MD from S&P Dow Jone Indices, told CNBC A-shares will change the landscape of global investing, once it's included in MSCI and
other major indices after problems are solved. _[Alka Banerjee, MD, S&P DOW JONES INDICES] "If you take the full inclusion of A shares into the emerging markets, it's actually
going to be 60%. So absolutely, I will say we S&P Down Jones as well as MSCI are underweight in China, but that's the reality of the situation without complete accessibility,
liquidity and ability to repatriate. (joint by)_ _ so it's a huge huge behavior that's waiting to happen. When it does, it will change the landscape of global investing." _ In
a weekend note, Deutsche Bank said that "inclusion of China A shares in MSCI or other major benchmarks could provide support for the market going forward." The report noted that
when MSCI announced in June 2013 it would include Qatar and the United Arab Emirates in its emerging market index and added the stocks the following year, the country-specific indices
outperformed. Last year, MSCI decided against including mainland stocks in its emerging market index due to restrictions on foreign investment in Chinese markets. Since then, China has taken
many steps to open up its capital markets, such as the the launch of the Shanghai-Hong Kong Stock Connect, which gives foreign investors access to A-shares through Hong Kong's
exchange. CNBC's Qian Chen, reporting from Singapore. Follow us on Twitter: @CNBCWorld